The price of natural gas has gone up by 2.05% for Thursday, which makes it $1.692. That is a turnaround from the decline natural gas pricing has been in lately.

It is possible that the uptick was spurred by the Producer Pricing Index report issued on Wednesday. That report gives indicators for inflation and showed that the PPI for the United States has increased by 0.6% for February, which is more than the 0.3% expected increase. Core PPI is up as well, by 0.4%.

Those numbers hurt the stock market a little, causing both the Nasdaq and the S&P 500 to close down slightly. However, the PPI report has had the opposite effect on the price of natural gas.

The US Energy Information Administration report was just released today, showing inventory status for petroleum. What information has helped the prices increase slightly as well, but the price will continue to stay fairly low during the hotter months of the year while inventory is still high.

Expect Movement on the Underside of $2

Natural gas reserves have been well stocked for the past few months, leaving little need for major gas purchases. That high supply is coupled with low demand at the moment that will keep the price of natural gas likely below the crucial $2 mark for now.

While we may see the price of natural gas fluctuate over the next few months, we do not anticipate much movement above the $2 level. What could drive the price much higher would be increased tensions in the Middle East or from Eastern Bloc countries over oil and other natural resources there. If Russia and the UK keep lodging sanctions at one another, then the supplies of natural gas will be fragmented, with neither side trading with the other. If Middle East fighting continues in oil-rich areas, the supply of old could be in jeopardy.

Current events in the partial areas will have the potential to drive gas prices with a lot of power, as opposed to the minor movement we see when it comes to the PPI report or other inflation factors.