Natural gas is benefiting from increased demand with a 4.17% jump for Tuesday.

That is after an increase from Monday as well, leading to optimistic outlooks for the market. Those outlooks need to be tempered with some realism, though. Even though the market has moved upward more dramatically than we have seen in a while, there is no guarantee it will stay high.

The current price for natural gas is $1.797 after trading around $1.83 for much of the day. Natural gas prices are up thanks (partially) to Chesapeake’s announcement that it would be cutting gas production in 2024. In order to help lower company costs, the gas production company is diminishing its output by 30% for the year in response to decreased demand.

Why Is Natural Gas up Today?

That is helping the wider market, spurring gas prices and ensuring the space between supply and demand is not quite so wide. A recent report from French company Gaztransport & Technigaz showed that the gas container maker received orders for more product than they expected. That data fed into the rising gas market as well.

Russian and British tensions remain high after discussions over the Ukraine war continue. It appears that Russia will continue its sanctions against the UK for its stance on the Ukraine fighting. That means the UK will need to fulfill its gas orders elsewhere, and this can help other gas markets outside of Russia’s flourish.

European gas prices are also on the rise because of Asian buyers now entering the market. With multiple upward pressure indicators at work, the market could continue to do well in the short term.

US dollar data shows a slightly weakening dollar, but there is minimal effect there on the natural gas market at the moment, analysts say. Watch for new inflation data that may move the dollar strongly in one direction or another and how that will affect the price of natural gas.