US natural gas futures hit seven-year highs

October 01, 2021 01:37 PM AEST | By Arpit Verma

US natural gas futures hit seven-year highs — Image source: Rising gas price | Source: © Krisdog | Megapixl.com

Significant rise in gas storage

As per the data released by the U.S. Energy Information Administration (EIA), utilities added nearly 88 billion cubic feet of gas into storage in the week ending 24 September.

The injection of 3.170 trillion cubic feet in the last week was nearly 6.3% lower than the five-year average of 3.383 tcf.

Furthermore, the analysts believe that the inventories in the US to reach about 3.5tcf at the beginning of the winter season in November, which they believe a comfortable level despite it is lower than the five-year average for the first time in a year.

Earlier in the week, the gas prices closed 11% higher, the highest since February 2014 on Monday followed by a drop of 6% on Wednesday.

US gas boom

Source: © Microvone | Megapixl.com

With gas prices hovering near record-high levels in Europe at US$32per mmBtu, US$6 in the United States, and US$30 in Asia, the buyers across the globe are ready to purchase all LNG produced in the US.

Even after significant reductions in the plants during September, the amount of gas transported to US LNG export plants has tumbled to an average of 10.4 billion cubic feet per day in the current month from 10.5 bcfd in August.

Also Read: Crude oil prices reach 3-year high on US supply disruptions

Bottom Line

The US natural gas futures surged to seven-year high levels as the market deficit in Europe has pumped the US gas supplies to record high levels, boosting prices.

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