• Natural Gas eases a touch after its 12% intraday rally on Wednesday. 
• Traders see upside potential for Gas prices as supply issues mount. 
• The US Dollar Index falls below 104.00 as market mood improves. 

Natural Gas (XNG/USD) is locking in its position above $1.80 on Thursday after booking over 12% gains on Wednesday. Price increases are driven by increasing geopolitical tensions in the Middle East and increasing supply woes. Iran’s Oil minister Javad Owji accused Israel of sabotaging its main Gas pipeline and blamed the country for a series of attacks that are targeting Iran’s nuclear program. On the supply side, Chesapeake Energy reported it will cut its Natural Gas production by 20%, whileNorwegian and US LNG exports are seen stalling or substantially falling..      

The US Dollar (USD) is facing a steep decline despite geopolitical tensions arising further, with The US Dollar Index (DXY) sliding below 104.00 following a wave of risk-on after upbeat Nvidia earnings and the Fed Minutes not bearing any surprise. 

Natural Gas is trading at $1.86 per MMBtu at the time of writing.  

Natural Gas market movers: Supply side narrowing even further

• The overall Gas supply just got smaller, with Chesapeake reducing its output production for 2024. The energy company is set to reduce nearly 20% of its total output for 2024.
• An unplanned outage in Norway has extended into Friday for its main gas pipeline towards Europe.
• A major LNG gas terminal in Italy is starting an eight-month maintenance ahead of schedule. 
• The US, Europe’s main Gas supplier, reports that an LNG export plant near the Sabine Pass will be closed for the rest of the week