US natural gas prices increase due to high demand in Asia and Europe

The Value of Locking in Natural Gas Prices Before Winter - LowerElectric

 

While Oklahoma and other Midwestern states have seen slightly increased temperatures in recent weeks, U.S. natural gas futures rose more than 2% to a seven-year high this week.

Record global gas prices are credited as the demand for U.S. liquefied natural gas (LNG) exports continued to be strong. The demand is due to low stockpiles in Europe ahead of the approaching winter heating season when the demand is high for natural gas.

Gas prices in Europe and Asia traded nearly four times over U.S. gas this week, thanks to what analysts call an “insatiable” demand for the fuel in Asia.

Tuesday was the last day of the front month and gas futures for October delivery went up 13.5 cents or 2.4%, settling at $5.841 per million British thermal units. That’s the highest close since February 2014.

November futures, which will soon be the front-month, were up about 13 cents to $5.85 per mmBtu.

Gas prices rose as the U.S. Energy Information Administration issued its weekly natural gas storage report showing mid-September temperatures in Oklahoma and the rest of the country, readings which could obviously play a role in storage demand for the coming winter months.

Parts of northern Oklahoma near the Kansas state line and into the Oklahoma Panhandle were 6 to 7 degrees warmer than the 30-year average. Central Oklahoma, according to the EIA dashboard was 4 degrees higher than the same average.

Southeast Oklahoma was only one degree higher than normal while eastern Oklahoma was 3 degrees above the 30-year average.

weekly average propane spot prices at Mont Belvieu, Texas