US natural gas prices rise 9.5 percent to highest since 2008 | Oil and gas news

Gas futures settled on the New York Mercantile Exchange at $6,312 per million British thermal units.

Through Bloomberg

Natural gas futures jumped to the highest transfer price in 12 years in New York as global gas supply shortages worry about shortages in the US.

As the Northern Hemisphere enters the winter heating season, low US aid supplies have raised concerns about potential shortages as demand for the furnace fuel increases. Gas futures rose 9.5% to end at $6,312 per million UK thermal units on the New York Mercantile Exchange, the highest closing price since December 2008.

Traders and brokers “surely believe there is great potential for the market to move into what we would call gas rationing, which simply means you basically have to keep gas in your inventories to meet supply needs,” he said. Nina Fahy, head of North American natural gas analysis at research firm Energy Aspects Ltd. Many are bracing for a brutally cold winter to deplete U.S. supplies, despite mild weather forecasts for the winter season.

The Bloomberg Commodity Spot Index rose to an all-time high on Monday as a global rebound in demand for commodities clashed with supply constraints. The pressure has been even greater in Europe and Asia, where gas and electricity prices have soared to new record highs. In the UK, benchmark gas prices hit a new record on Tuesday, jumping 23% to the equivalent of about $42.

Gas production in U.S. fields, excluding Alaska, collapsed at around 91.2 billion cubic feet on Tuesday, the lowest since early September, according to BloombergNEF. National stocks held to increase pipeline supplies over the winter are 15% lower than a year ago, government figures show.

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