Natural gas prices continue to surge amid rising tensions between the US-led NATO and Russia over the Ukraine crisis. The commodity witnessed 10 percent gains in trade on January 27, 2022 and further added more than 2 percent in today’s trade.

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February futures settled nearly 46 percent on the higher side in yesterday’s trade. The March futures also gained up by 10 percent and the prices are trading above $4 levels. There has been a huge massive short squeeze coming for this commodity and with the kind of fundamentals that we are looking at, the commodity does look bullish from hereon.

The cold weather forecast in the US and the rest of the world has led to higher demand there, the US inventories in the meanwhile have seen the highest draw since February 2021. There is strong gas demand from Europe and Asia and then the US gas export plants also are running at record highs.

The Russia-Ukraine conflict has yet another major reason.

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First Published:Jan 28, 2022 1:43 PM IST