US Natgas Prices Climb to Two-Week High on Oil Futures and Hot Weather
US natural gas prices surged to a two-week high on Thursday, driven by a jump in oil futures and forecasts for hotter weather. The price of front-month gas futures for August delivery rose 5.6 cents, or 1.9%, to $2.981 per million British thermal units (mmBtu) on the New York Mercantile Exchange.
The increase was despite energy firms adding a bearish 35 billion cubic feet (bcf) of gas to storage during the week ended July 17, which is higher than usual. Analysts had forecasted an increase of 27 bcf during the same week last year and a five-year average increase of 30 bcf.
The surge in gas prices was also influenced by concerns over supply disruptions in the Middle East following an attack on Saudi tankers in the Bab el-Mandeb Strait. Oil futures jumped about 5% due to these worries, which further contributed to the rise in natural gas prices.