Natural Gas Prices Surge as Record Production Fails to Crush Demand
Natural gas prices have been rising in recent days, with October futures settling at $2.935/MMBtu on Monday, up 1.6% from the previous day.
This puts the price of natural gas within reach of the crucial $3 level, despite record levels of U.S. production.
The main driver behind this increase is stronger demand for natural gas, which has been boosted by hotter-than-expected temperatures and increased LNG exports.
According to EIA data, dry gas production reached a record 112.33 Bcf/d in June, but the latest storage build of just 15 Bcf was below both market consensus and the five-year average.