Natural Gas Futures Rise Amid Ongoing Energy Disruptions
US natural gas futures rose on Tuesday, rebounding from a more than one-week low hit in the previous session. The gains were capped by record output and forecasts for lower demand than previously expected.
The front-month gas futures for September delivery on the New York Mercantile Exchange rose 3.1 cents, or 1.2 percent, to USD2.72 per million British thermal units. This came after Brent crude oil rose above USD91 a barrel due to increased worries about prolonged energy supply disruptions.
Thomas Saal, senior vice president for energy trading at StoneX Financial, attributed the price rise to 'the lack of supply out of the Middle East' and the LNG export market's performance. However, he noted that natural gas prices are still in a sub-USD3 area due to ample supply.