The price of futures contracts for natural gas in the US rose during trading on Monday by more than 10%, reaching the highest level in a month.
The price of gas for December delivery rose 11.5 percent to $7.136 per million thermal units, the highest price since October 6.
Prices rose due to the possibility of increased demand during the winter frosts with limited supplies.
Temperatures in about 48 US states will drop below normal during the week ending November 20, according to the US Climate Prediction Center, marking the first cold wave in the United States this winter.
And Bloomberg reported that U.S. gas prices have fallen in recent months in light of milder-than-usual weather during the fall season, lowering gas demand and increasing domestic inventories.
He added that inventories remained below normal due to increased exports, which are expected to increase during the winter season, as foreign buyers seek to buy gas to fill the shortfall caused by a sharp reduction in natural gas supplies.
The densely populated northeastern regions of the United States are suffering the most gas supply shortages, meaning they will face a heating fuel crisis during the winter due to difficulty accessing domestic supplies and low diesel (diesel) inventories from normal levels.
Source: db a
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