Natural gas prices climbed 0.43% as traders weighed bullish European supply disruptions and warm US weather against a bearish 40 bcf weekly inventory build reported by the EIA.
US nat-gas prices recover on European demand surge and hot US weather, but bearish storage data.
European nat-gas surges to multi-year high on Middle East supply disruptions and low storage levels.
Crude oil prices soar on escalation of Middle East hostilities and supply fears.
US natural gas prices rebounded from two-week lows, settling up 0.43% as European supply concerns and hot US weather forecasts countered bearish inventory data. While the EIA reported a larger-than-expected 40 bcf storage build, traders focused on potential export demand surges driven by Middle East hostilities and the closure of the Strait of Hormuz.
European prices are surging due to low storage levels and supply fears stemming from Middle East hostilities, which may force Europe to rely more heavily on US LNG exports.
The market initially dipped on the report, which showed a 40 bcf inventory increase—higher than the 34 bcf expected—before recovering on broader energy sector strength.