Henry Hub natural gas futures (NATGAS) are rising over 5% today, reversing yesterday’s sell-off. It’s difficult to pinpoint a single driver behind the rally, but several factors may be contributing. Among them is the upward momentum in European gas prices, supported by the ongoing conflict in Ukraine—especially after the recent Trump–Putin conversation—which clearly does not suggest a return of Russian gas supplies to Europe.
Additionally, limited supply from Norway, the region’s main gas exporter, is adding pressure. Due to maintenance work, Norwegian gas flows are declining today and are almost certain to drop further tomorrow, which supports the current bullish sentiment. On the other hand, U.S. weather forecasts provide no major catalyst, and recent NOAA updates to weather maps actually favor lower gas prices—a scenario the market was pricing in yesterday.
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Looking at the short-term gas chart, we can see that the path of least resistance is downward, and prices are currently testing that level near $3.26. A break above $3.27 could signal an attempt to return toward the $3.40 area and potentially mark a trend reversal.
Source: xStation5
