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Natural Gas Price Chart And Analysis

Energy Commodity

For many decades, energy whether renewable energy or fossil fuels were used as indispensable products. Energy has always been essential for human survival. There are multiple and different types of energy commodities available in the market. The commodities hold different prices and values, based on their availability, usage, and power. From our page, you can get the entire overview regarding commodity sections like bullion, base metal, energy. Under the energy section, there are crude oil and natural gas. previously, we cover crude oil, today’s focal point is on natural gas. Here, we provide a live natural gas price chart along with an analytical overview.

Before proceeding further, let’s just have a look at a short description of the term “energy”. Literally, energy means a power that is derived from the utilization of either chemical or physical resources. Through the utilization of energy, we can fulfill our daily requirements of light, heat, or machinery works. As we’ve mentioned above, there are separate forms of energy. Among them, few forms of energy such as sound, chemical, radiant, electric, atomic, and mechanical.

Indian Commodity Exchange Market

Those who deal with the market, investment, must be acquainted with the exchange-traded market. There are two types of market, one is over the counter and the other is the exchange-traded market. In a SEBI regulated exchange market, there are both commodities and equity exchanges. Commodity exchange control and maintain the entire transaction process between buyers and sellers. Among various regional and national commodity exchanges, there are MCX (Multi Commodity Exchange), NCDEX (National Commodity and Derivates Exchange), ICEX (Indian Commodity Exchange). NMCE (National Multi Commodity Exchange) etc. Generally, MCX is one of the most widely used exchanges in the Indian Commodity Market.

Natural Gas, Energy

Natural gas is a combination of different gases. These gases (nitrogen, methane, carbon dioxide, etc) are rich in hydrocarbons are naturally found in the atmosphere deep inside the earth. In order to get the power from the natural gas, it must be processed and converted. Natural gas can not be used in its raw form. One of the main and primary usages of natural gas is generating heat and electricity. We will describe the various uses of natural gas later. The usage includes domestic, industrial, business. Before that, let’s have a look at the live┬ánatural gas price chart, natural gas price support, and resistance.

Natural Gas Price Support And Resistance

Natural Gas Futures Daily Chart

The attached chart will update automatically after the manual refreshment of the page. The daily candles of the chart will move with natural gas price fluctuations.

Usage of Natural Gas

Natural gas comes under the category of non-renewable energy (which means it cannot be replenished). So, among its variety of uses, there are mainly residential, industrial, commercial applications. Therefore, the list of usages is described below:

Residential Usage

  • Almost in every domestic residence, natural gas is used as the main component of cooking gas.
  • One of the primary usages of natural gas is to generate electricity.
  • Apart from the above usages, it is applicable in the heating, dryers and other purposes.

Industrial Usage

  • There is numerous industrial usage of natural gas like manufacturing, heating, electricity generation etc. Industries like steel, paper, apply natural gas to generate steam, heat for production purpose. Other industries such as plastics, fertilizers, synthetic fibers, medicine, cosmetics etc use natural gas as a primary component.
  • Almost all industries require electricity, heat for production, manufacturing purpose.

Other Usage

  • Since 1930, natural gas has been used to power vehicles. One of the main objectives of using natural gas in a vehicle is to reduce the pollution and cost.
  • In order to reduce cost in various segments, natural gas can be used. As its availability is easy, the usage cost of natural gas is low.

Reason to Invest for Natural Gas Commodity

According to the data of US Energy Information Administration projects, global natural gas consumption is going to rise between 2010 and 2035 by 50 percent. Hence, the reason behind the rise in the consumption of natural gas is the hike in demand.

  • Huge demand for natural gas raises its value.
  • In order to reduce the pollution and cost in the transportation, natural gas is used.

Natural Gas in the Commodity Market

For its demand and value, natural gas plays a significant role in the commodity market. It is considered a profitable commodity product in the market.

However, the trading unit for Natural Gas in MCX is 1250 mmBtu. So generally speaking the lot size of NG is 1250. So 1 rupee of price movement in NG can fetch Rs. 1250 profits for a trader. Intraday traders generally trade for 1-2 rupees profit.

If a trader can trade NG with 60% accuracy and out of 5 trades if he books 3 trades at 3 rupees profit, i.e, total profit booked = 3 x 3 = 9 points. And if he loses 2 trades 1.5 points each so total loss is 2 x 1.5 = 3 points. Net profit in a week = 9 – 3 = 6 points. Net profit value = 6 x 1250 = Rs. 7500.

So a trader can safely earn his living by trading Natural Gas if he maintains a good risk-reward ratio. In general, NG is a slow-mover in the MCX market. It also reacts heavily during inventory time. Hence traders are advised to be cautious on inventory day. However, you can use line break charts to trade volatile times.

Therefore, a broker like Zerodha requires around Rs. 22,000 to carry forward 1 NG contract positionally. However, in intraday trading, the margin requirement is much lower.