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U.S. natgas rise to 7-year high on record global prices

29 September 2021 07:35 (UTC +04:00)

U.S. natural gas futures climbed more than 2% to a seven-year high on Tuesday as record global gas prices keep demand for U.S. liquefied natural gas (LNG) exports strong, APA reports quoting Reuters.

Traders noted prices were volatile - rising over 10% early in the session for a second day in a row - since volumes were thin with the front-month October contract expiring on Tuesday. They also noted prices rose despite forecasts for milder weather and lower demand than previously expected over the next two weeks.

Gas prices in Europe and Asia traded about four times over U.S. gas due to insatiable demand for the fuel in Asia and low stockpiles in Europe ahead of the winter heating season, when demand peaks.

On the last day as the front month, gas futures for October delivery rose 13.5 cents, or 2.4%, to settle at $5.841 per million British thermal units (mmBtu), the highest close since February 2014 for a second day in a row.