Natural gas hits new 14yr ATH6 May 2022 11:28
US natural gas futures hit a near fourteen-year high of $8.65 per million British thermal units, as forecasts pointed to likely record early-season heat, exacerbating concerns over tight supplies. The US is set for temperatures in May that would even be considered hotter-than-normal during summer months, while production remained 2 billion cubic feet below this year’s highs amid the maintenance season and recent freeze-offs. At the same time, export facilities have been running at near record levels to supply Europe with LNG as the region tries to wean off Russian supplies. The combination of late wintry weather, soaring overseas demand and insufficient supplies is offsetting efforts by utilities to inject natural gas into underground storage, which currently sit 17% below the 5-year average.
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