Natural gas prices in the U.S. hit a 13-year high on growing concern that stockpiles of the
power-plant fuel will fall short of demand this coming summer.
U.S. natural gas for June delivery is up 6.4% to $7.954 U.S. per million British thermal units on
the New York Mercantile Exchange.
In the past, U.S. natural gas price spikes tended to be triggered by winter weather that boosted
consumption, or by Gulf of Mexico hurricanes that limited supplies. At this time of the year,
North American manufacturers and brokers typically have no trouble placing natural gas in
storage caverns for use later in the year.
However, the combination of post-pandemic consumption increases, soaring overseas demand,
and a muted output response from domestic shale drillers is driving prices higher.
U.S. gas inventories are currently 17% below normal, the biggest deficit since 2019 for this time
of year. The shortfall comes against a backdrop of record exports and stalled gas production.
That’s fueling expectations of more price increases throughout this year.