FEB 8 2009
Natural gas price closed firm in yesterdays session.
Economic data co ntinues to be bearish and indicate recession
which will lead to a lower industrial demand .
US and Europe industrial demand has declined in the recent
past and set to decline further.
DOE inventory data was released .Data was 195 bcf and it was just
what was expected.
Mean while colder weayher in the US might support prices.
With ample stocks available and declining crude prices
seems it difficult for natural gas to sustain at current
prices.
Inventory is higher than last year and the demand is also
going to decline because of recessionary conditions.
We remain bearish on this commodity.
Price of natural gas can test $ 4 in the coming session.
It could test Rs 200 to 210 in MCX Feb contract.
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