US Nat-Gas Prices Rebound on Short Covering and European Demand Surge

Natural gas prices have made a recovery from their two-week low on Thursday, settling higher at +0.43% for October Nymex natural gas (NGV26).

The rebound is attributed to short covering in the market, which was supported by carryover from a rally in European nat-gas prices that reached a 3.75-year high.

This surge in European nat-gas prices can be attributed to reduced supplies from the Middle East due to the closure of the Strait of Hormuz from the US-Iran war, which may boost demand for US gas supplies in Europe.

European nat-gas storage levels are also below normal, creating a bullish scenario ahead of winter when demand typically increases.