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While crude oil futures traded lower on the Multi Commodity Exchange (MCX) during the initial hours of Wednesday morning, natural gas futures traded higher as prices were up globally on cold weather forecast.
January natural gas futures were trading at ₹311.10 on MCX in the initial hour of Wednesday morning against the previous close of ₹307.10, up by 1.30 per cent.
February futures of natural gas were at $4.219 on NYMEX, up by 0.02 per cent.
Coal weather drives up demand
Severe cold weather in many parts of the US is leading the demand for natural gas. The weather with sub-zero temperature has forced schools in north-east part of the US to cancel classes on Tuesday.
Recent reports had said that the fall in temperature had made natural gas wells in many parts of the US to freeze, affecting output from those wells. US is one of the major exporters of natural gas.
January crude oil futures were trading at ₹5994 in the initial hour of Wednesday morning as against the previous close of ₹6004, down by 0.17 per cent.
March Brent oil futures were at $83.62, down by 0.12 per cent; and the February crude oil futures on WTI at $81.26, up by 0.05 per cent.
However, market participants feel that the statement of US Federal Reserve Jerome Powell is likely to boost short-term fuel demand. On Tuesday, he said that rate hikes and tighter policy will be needed to control inflation. Market participants felt that a tight market will help support oil prices.
NCDEX
On the National Commodities and Derivatives Exchange (NCDEX), the January guar gum contracts were trading at ₹11719 in the initial hour of Wednesday morning as against the previous close of ₹11504, up by 1.87 per cent.
The January castorseed futures were trading at ₹6030 on Wednesday morning against the previous close of ₹5978, up by 0.87 per cent.
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