Natural Gas Prices Rise Amid European Demand Surge
Natural gas prices rebounded from a two-week low, closing higher as short covering emerged alongside strong gains in European natural gas. The surge in Europe is attributed to reduced Middle East supplies due to the closure of the Strait of Hormuz amid US-Iran tensions and below-normal storage levels ahead of winter demand peaks. In the U.S., prices also received support from forecasts for warmer weather, which could increase electricity generation needs using natural gas. However, a larger-than-expected rise in weekly U.S. gas inventories initially pressured prices lower before they recovered.
