Natural-Gas Prices Are Rising With Temperatures
- Date: 20-Jun-2021
- Source: The Wall Street Journal
- Sector:Oil & Gas
- Country:Middle East
Natural-Gas Prices Are Rising With Temperatures
Natural-gas prices are starting the summer air-conditioning season nearly twice as high as they were a year ago.
Demand for the fuel is picking up as the world's economies reopen and as Americans dial down their thermostats for what is expected to be a hot summer. Meanwhile, U.S. producers have stuck to the skimpy drilling plans they sketched out when prices were lower, eliminating the glut that was keeping them depressed.
Natural-gas futures ended Friday at $3.215 per million British thermal units, up 96% from a year ago and the highest price headed into summer since 2017. Futures traded even higher—and regional spot prices jumped—when triple-digit temperatures baked the Southwest earlier this month. Analysts expect prices to be even higher later in the year when it is time to fire up furnaces.