Natural gas futures climbed to $4 per million British thermal units in the United States for the first time since December 2018 as summer heat increased concerns about tight supplies later this year.
- Gas for August delivery settled at $4.003, the highest closing price of natural gas in 31 months. The premium for March 2022 reached 62.9 cents, close to a near record high.
- Prices for the fuel are climbing across the globe as scorching weather raises demand for electricity to run air conditioners. Stockpiles are below normal in 2021 and production growth has been restrained.
- The increased summer heat could pressure power demand in Texas to near-record levels in the upcoming week, but the state’s grid operator has more than enough electricity to contain blackouts.
Exports are also contributing to limited gas supplies. For the first time ever, shipments of liquefied natural gas surpassed Australia’s. U.S. gas in underground storage is 6.2% below normal level.
EUR USD down -0.04%
Source: Bloomberg.
