(Bloomberg) — US natural gas prices surged to the highest intraday level in over 13 years, topping January’s short squeeze-fueled rally.
Futures rose to $7.436 per million British thermal units in early Asian trading, roughly double since the start of the year, as robust demand tests US drillers’ ability to expand supplies.
Backup inventories held in underground caverns and aquifers are below normal for this time of year and production is holding flat. Meanwhile, the US is exporting every molecule of liquefied natural gas possible to help Europe reduce its reliance on Russian energy supplies.
A shortage of coal in the US has also helped fuel the gas rally, limiting power generators’ ability to switch fuels when demand, and prices, rise.
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