Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Hazloc Heaters
Copper Tip Energy Services
Copper Tip Energy
Hazloc Heaters


U.S. Natural Gas Surges to 13-Year High on Global Supply Crunch


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) —U.S. natural gas prices surged to the highest intraday level in over 13 years as robust demand tests drillers’ ability to expand supplies.

Futures rose as high as $7.558 per million British thermal units, topping January’s short squeeze-fueled rally and roughly double levels from the start of the year.

A global fuel crunch is rippling across markets as suppliers struggle to meet a post-pandemic surge in consumption, further exacerbated by the war in Ukraine. While U.S. natural gas prices have remained well below rates in Europe and Asia for the past year thanks to a bounty of shale fields, that discount has been shrinking.

Backup inventories held in underground caverns and aquifers are below normal for this time of year and production is holding flat. Meanwhile, the U.S. is exporting every molecule of liquefied natural gas possible to help Europe reduce its reliance on Russian energy supplies.

U.S. natural gas surges to highest since 2008 on strong exports, low stockpiles

Below-normal temperatures are forecast across parts of the northern U.S. from April 25 to May 1, according to the National Oceanic and Atmospheric Administration. That could increase demand for the heating and power-plant fuel, diverting supply that normally goes to storage during this time of year. A shortage of coal in the U.S. has also helped fuel the gas rally, limiting power generators’ ability to switch fuels.

GLJ

Prices

GLJ

Front-month futures rose as much as 3.5% to $7.558 per million Btu on the New York Mercantile Exchange, and traded at $7.508 at 8 a.m. London time.

Inventories grew by 15 billion cubic feet in the week ended April 8, less then half the average gain for the period over the past five years, the Energy Information Administration said last week. Stockpiles remain almost 18% below usual levels.

 



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE