US natural gas futures jumped about 7 percent to a 14-year high on Tuesday, helped by a sharp increase in global gas prices and a drop in US production.
Gas contracts for September delivery ended the trading session on the NYMEX up 60.1 cents, or 6.9 percent, to record at settlement $ 9.329 per million thermal units, the highest closing level since early August 2008.
And US gas contracts are up about 150% so far this year, as much higher prices in Europe and Asia keep demand for US LNG exports strong, especially since the volume of gas flowing from Russia to Europe decreased following the Russian invasion of Ukraine on February 24. February.
Gas is trading around $66 per million thermal units in Europe and at a record level of $57 in Asia.
The United States became the world’s largest exporter of LNG over the course of the first half of 2022. But whatever the rise in global gas prices may be, it cannot export any additional quantities of LNG because the country’s factories are already operating at full capacity.
(Archyde.com)