1138 ET - Some of the factors lifting U.S. natural gas prices--extreme cold weather and short-covering--have also been driving European prices higher, Hamad Hussain and David Oxley of Capital Economics say in a note. Risks to U.S. gas infrastructure and as a result U.S. LNG exports helped EU natural gas prices recently cross EUR40 per MWh for the first time in seven months, they say. The link comes from Europe's shift away from Russian pipeline gas and increasing dependence on LNG. Natural gas prices in the U.S. are bound to fall back from current levels, "but we still expect prices to be relatively high by the end of this year," they add. "This is mainly because foreign demand for LNG will divert more feedgas to U.S. export terminals, reducing the availability of supply domestically." (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

January 23, 2026 11:38 ET (16:38 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.