Measured based on production data from the U.S. Energy Information Administration (EIA)

U.S. Natural Gas Prices Surge Above $3, Up 32% YoY

Jun 11, 2024, 08:02 AM

Natural gas prices in the U.S. have surged above $3 per million British thermal units (mBtu) for the first time since January, driven by stronger demand, production cuts, and increased gas-fired generation and LNG exports. The price rise marks a significant rebound from the lows of approximately $1.5 per mBtu in April. Natural gas futures have also increased by 5%, and the commodity is on track for its highest close since November. Spot prices across the U.S. have followed this upward trend, with prices up 32% YoY. The rise in natural gas prices has positively impacted related stocks, with companies like Tidewater Inc. (TDW) seeing a 13% increase. Analysts are noting the potential for further price increases due to ongoing market dynamics and historical patterns reminiscent of the 2010 European banking crisis.