Hot Temperatures and US-Iran Conflict Drive Up Natural Gas Futures Prices

Natural gas futures prices rose on Wednesday as traders became increasingly bullish about the outlook for the fuel. Forecasts of exceptionally hot temperatures in September, which could drive up demand, were a key factor behind the price increase.

The heat forecasts, which predicted record-breaking temperatures for September, also boosted trading activity on the TTF market in Europe. The market's prices reached their highest levels since January 2023 as traders took advantage of the bullish sentiment.

Additionally, the prospect of renewed US-Iran fighting added to the upward pressure on natural gas futures prices. The conflict could lead to increased demand for the fuel, further driving up prices.

NGI models predict a storage injection of 31 Bcf, which is in line with expectations.