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Natural Gas Tops $9 in US as Supply Crunch Concerns Mount

  • Stockpiles of the fuel are below normal for this time of year
  • Russia’s invasion of Ukraine has worsened a global gas crunch
Gas stockpiles remain below normal for this time of year.

Gas stockpiles remain below normal for this time of year.

Photographer: George Frey/Bloomberg
Updated on

Natural gas briefly surged above $9 per million British thermal units in the US for the first time since 2008, extending a breakneck rally as fears of a supply crunch intensified, before paring gains into close.  

Stockpiles of the heating and power-plant fuel are below normal for this time of year as exports are booming, and output from shale basins is muted. Traders anticipate higher-than-usual gas needs this summer to fuel US power plants as consumers and businesses crank up air conditioners to combat hotter weather. Meanwhile, hydro-power generation and coal supplies are severely constrained, leaving limited alternatives to gas.