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U.S. natural gas prices rose 9.5% to highest since 2008

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The settlement price of natural gas futures on the New York Mercantile Exchange is $6.312 per million British thermal units.

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As global natural gas supply shortages have triggered concerns about shortages in the United States, natural gas futures surged to the highest settlement price in 12 years in New York.

As the northern hemisphere enters the winter heating season, the low auxiliary supply in the United States has raised concerns about potential shortages due to increased demand for furnace fuel. Natural gas futures on the New York Mercantile Exchange rose 9.5% to close at $6.312 per million British thermal units, the highest closing price since December 2008.

According to Nina Fahy, dealers and brokers “will definitely consider that the market must adopt what we call the natural gas rationing pricing. It’s just that you basically have to keep natural gas in your inventory to meet delivery needs.” Research firm Energy Head of North American Natural Gas Analysis at Aspects Ltd. Despite the mild winter weather forecast, many people are preparing for a severe winter to deplete American supplies.

The Bloomberg Commodity Spot Index surged to a record high on Monday as the recovery in global demand for raw materials conflicted with supply constraints. The pressure in Europe and Asia has become more severe, with natural gas and electricity prices soaring to record highs. In the UK, the benchmark natural gas price set a new record on Tuesday, rising 23% to about $42.

According to data from Bloomberg New Energy Finance, natural gas production from US oil fields (excluding Alaska) fell by approximately 91.2 billion cubic feet on Tuesday, the lowest level since early September. Government data show that the national inventory stored to increase the supply of winter pipelines has fallen by 15% compared to a year ago.





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