Natural Gas price ticks up, although its upside looks capped due to easing demand.
Gas prices could dip lower in the coming days with Freeport supply coming in.
The US Dollar Index dives after a sharp appreciation from the Japanese Yen unofficially attributed to an intervention.
Natural Gas (XNG/USD) prices are ticking up above $2 on Monday, showing a distorted picture of fundamentals against correlations. Fundamentally, Gas prices are expected to retreat a little with news that points to higher supply and lower demand, a textbook combination for lower prices. On the demand side, Europe is about to face a warm weather front, slashing the demand for Gas in the continent. Adding to this, more supply is likely coming online as the US Freeport Liquified Natural Gas (LNG) plant overcomes some of its technical problems, which have weighed on production for the last few months.
Meanwhile, the US Dollar Index (DXY) is easing substantially, helping to push commodities’ prices higher. The easing comes on the back of an unofficial intervention from Japanese authorities to support the Japanese Yen (JPY), which has strengthened substantially against the US Dollar overnight. This had a ripple effect on the Greenback against other major currencies and pushed commodities higher.
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