Natural gas prices across the world remained strong Tuesday as demand centers competed for supplies.

Prices in Europe weakened Tuesday, but fundamentals continue to support higher prices. Dutch futures climbed throughout last week and hit a record on Monday to settle near $15/MMBtu. The UK benchmark National Balancing Point contract also touched a 16-year high last week. 

The run-up in European prices is being driven by concerns that the winter heating season will begin without adequate supplies as storage inventories remain low. Also, Asian buyers continue to outbid for LNG cargoes as restocking demand is high amid hot weather in the region. JKM spot prices for September delivery surged above $16 Tuesday and were near a seasonal high.

“While gas markets around the globe...