Natural gas prices have reversed higher and have been trending up over the last couple of weeks.
The Natural Gas futures contract on the Multi Commodity Exchange of India (MCX) touched a low of Rs. 181.8 per mmBtu on February 15 and has reversed higher from there. It is currently trading at Rs. 202 per mmBtu.
The recent up-move is an early sign that the downtrend that has in been in place since December 2018 could have come to an end.
Positive outlook
Natural gas prices have been volatile since the second half of 2018. The MCX-Natural Gas futures contract had surged to a multi-year high of Rs. 358.7 in November 2018. But, the contract reversed sharply lower giving back all the gains made in 2018 in a short span of two months. After touching a low of Rs. 181.8 earlier this month, the contract has reversed.
