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Record Heat Wiping Out U.S. Gas Glut Fuels Best Rally Since ’08

  • Hot weather will lead to boost in demand from power plants
  • Drillers are refilling storage at half the 2015 pace
A refinery stands in the background as a pump jack operates in an oil field near Corpus Christi, Texas, on Jan. 7, 2016.
Photographer: Eddie Seal/Bloomberg
Updated on

A blistering start to summer is helping put U.S. natural gas futures on course for the biggest gain in eight years.

Gas has surged 19 percent this year, rebounding from a 17-year low. Drillers, burned by earlier declines, are refilling storage at half last year’s pace as extreme heat boosts the use of air conditioners, increasing gas demand from power plants. By November, supplies will probably drop below the five-year average, the benchmark for normal levels, for the first time in 13 months, based on storage rates.