Natural gas futures in the United States rose almost 7% today, Monday, approaching the $10 million British thermal unit barrier, boosted by predictions of high demand and record prices in Europe, as well as concerns over fuel shortages.
Natural gas futures for September delivery increased 3. 7%, or 34. 4 cents, to finish at $9. 680 per million thermal units on the NYMEX, after rising around 7% earlier in the session to $9. 982, the highest level in 14 years.
International prices remain high, with Europe paying roughly $84 per million thermal units and Asia paying around $57.
Russian gas giant Gazprom said on Friday that it will cease natural gas shipments to Europe for three days at the end of the month via the region’s major pipeline; this puts more pressure on Europe as it looks to replenish its fuel reserves ahead of winter.
The average volume of gas going to US LNG export facilities, on the other hand, was 10.
So far in August, the volume has been 9.9 billion cubic feet per day, the same as in July, and this compared to a monthly record level of 12.9 billion cubic feet per day in March.
The seven biggest export plants in the United States have the capacity to convert about 13. 8 billion cubic feet of dry gas per day to liquefied gas.
Due to high demand, US gas contracts are approaching $10.
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