• Natural Gas prices are soaring towards $2.00 at the start of the week.
• Traders seem to be pricing in supply issues ahead in Europe as shortages from Egypt worsen. 
• The US Dollar Index is stuck in a ‘push and pull’ pattern with the Fed pushing against markets’ expectations for fewer rate cuts.

Natural Gas (XNG/USD) price soars higher on Tuesday after a stellar performance on Monday, trading up nearly 3% for the week. The move comes as Bloomberg forecasts a decline in Gas supply by 4% in the coming weeks as Egypt is looking to hoard gas exports to keep for its own energy consumption. With the hot season nearing in the region, air conditioning and cooling installations are draining the energy grid and are in need of more electricity, which Egypt gets partially from its Gas-burning installations. 

The DXY US Dollar Index, meanwhile, had a soft start of the week, though keeping afloat around 104.00. Markets are digesting rather positive US data that points to a healthy and steady US economy, while US Federal Reserve (Fed) officials keep pushing back against market expectations by saying that rate cuts are coming soon. This keeps traders sidelined and puts the US Dollar Index in a sideways pattern of just 3% volatility from top to bottom, for the better part of 2024. 

Natural Gas is trading at $1.98 per MMBtu at the time of writing.