U.S. Natural Gas Surges to 13-Year High on Global Supply Crunch
- Shale-well output has been flat amid anemic inventory builds
- American LNG exports are maxed out on strong European demand
This article is for subscribers only.
U.S. natural gas surged to a 13-year high, briefly breaking above $8 for the first time since 2008, as robust demand tests drillers’ ability to expand supplies.
Front-month futures closed 7% higher in New York Monday. The last time prices were this high was August 2008, when hurricanes menaced offshore gas platforms in the Gulf of Mexico and searing summer weather stoked demand for power to run air conditioners. Back then, prices only began to drop when the broader economic outlook turned dark ahead of the historic worldwide financial crisis.