Natural Gas prices are undergoing some profit-taking on Tuesday.
Israel has started its ground offensive in Rafah while ceasefire talks don’t bear fruits.
The US Dollar Index ticks up on Tuesday after closing above 105.00.
Natural Gas (XNG/USD) retreats from the peak at $2.40 seen on Monday after markets were pricing in more risk premium on the heated-up situation in the Middle East. Although ceasefire talks are taking place again in Cairo, headlines on Monday showed that a deal is still far from near and Israel has started its ground offensive in Gaza’s southern city of Rafah. Meanwhile, Australian Liquified Natural Gas (LNG) exports are expected to drop substantially with Chevron’s Gorgon plant remaining offline for at least five weeks.
The US Dollar Index (DXY) is heading higher on Tuesday after Monday saw US Dollar bulls salvage it from a further slide by eking out a daily close above 105.00. That level is a line in the sand on the DXY chart in terms of more upside or downside.
Natural Gas is trading at $2.30 per MMBtu at the time of writing.
