Natural Gas Futures Surge on Anticipated Demand Increase and Supply Concerns

Natural gas futures are rallying as traders anticipate higher demand due to rising U.S. temperatures, with forecasts predicting stronger demand in key regions reaching 100°F. Bullish bets have surged to a six-week high as money managers unwind short positions, expecting increased cooling demand.

Supply concerns are growing with an unusual summer storage draw expected, tightening the supply-demand balance. Additionally, uncertainty looms over Russian gas supplies to Europe as the transit deal through Ukraine nears expiration.