Natural gas prices again showed volatility this week as news of Russia potentially pouring more into the war effort warned of further disruptions to energy markets.

After five sessions of losses, the October Nymex gas futures contract settled at $7.779/MMBtu on Wednesday, up 6.2 cents day/day. November gained 5.5 cents to $7.827. But then a bearish U.S. storage print sent futures prices plunging below $7.40/MMBtu.

Even as the supply picture in North America continues to improve, Morgan Stanley analysts see U.S. inventories entering winter about 10% below normal. Supply growth should then close the storage deficit next year, meaning prices of around $5.25 through 2023, analysts said.

In Mexico, IPGN natural gas prices jumped to a record $8.363/MMBtu in August. This is compared...