US Natural Gas Prices Leap 6.2% Amid Strong Demand

Natural gas futures surged on Thursday despite another US supply build and strong production levels. The October contract rose $0.194, or 6.22%, to $3.349 per million British thermal units (Btu) at 18:50 GMT on the New York Mercantile Exchange.

This marks a 17% weekly increase for natural gas prices, which are now up 6.3% year-to-date. The price level is the highest since July.

According to Phil Flynn, energy strategist at The PRICE Futures Group, 'the tape is reacting to leftover September heat and a tightening storage picture.' He also noted that LNG demand is still the floor under this market.