The escalations between Russia and Ukraine have supported natural-gas prices “as the prospects for U.S. [liquified natural gas] exports to Europe increase amid the supply threats associated with the ongoing war,” said Tyler Richey, co-editor at Sevens Report Research. U.S. forecasts for colder weather were also lifting near-term demand expectations, he said.
Natural gas for December delivery rose by 6.5% to $3.19 per million British thermal units, the highest front-month contract finish since Jan. 12, according to Dow Jones Market Data.
Oil futures settled lower on Wednesday, as a third straight weekly rise in U.S. crude supplies and worries about global demand outweighed support from a “meaningful escalation” this week in tensions between Russia and Ukraine.
West Texas Intermediate crude for December delivery fell by 52 cents, or nearly 0.8%, to settle at $68.87 a barrel on the New York Mercantile Exchange on the contract’s expiration day. January WTI oil, which is now the front month, lost 49 cents, or 0.7%, at $68.75. January Brent crude, the global benchmark, declined by 50 cents, or 0.7%, to $72.81 a barrel on ICE Futures Europe.