🔴 Natural Gas is trading 2.2% down today on bearish inventory expectations and geopolitical tension

Natural Gas is trading 2.2% down at $3.08 as traders await a key government inventory report amid a tense geopolitical backdrop.

• Prices are under pressure ahead of the U.S. Energy Information Administration's (EIA) weekly storage report, with polls pointing to a larger-than-average inventory build which suggests ample supply.
• The decline comes despite a major escalation in the Middle East, where Iran announced the full closure of the Strait of Hormuz, a critical chokepoint for global energy shipments.
• While the geopolitical turmoil is broadly supportive for energy prices, the immediate catalyst for today's drop in natural gas is attributed to bearish supply/demand fundamentals in the U.S. market.