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.
