NEW YORK: US natural gas futures soared to their highest since 2014 for a second day in a row on Tuesday, putting them on track to close at their highest since 2008, as record global gas prices kept demand for US liquefied natural gas (LNG) exports strong.
The entire energy complex is trading at multi-year highs on concerns global supplies and production may not keep pace with forecasts for demand to grow this winter. Oil prices were trading at their highest since October 2018, while gas prices in Europe and Asia were about four times over US gas due to insatiable demand for the fuel gas in Asia and low stockpiles in Europe ahead of the winter heating season when demand peaks.
On their last day as the front month, gas futures for October delivery rose 47.4 cents, or 8.3%, to $6.180 per million British thermal units (mmBtu) at 8:08 am EDT (1208 GMT), putting the contract on track for its highest close since December 2008.
In intraday trade the front-month jumped over 10% earlier on Tuesday to its highest since February 2014. If the contract closes over 10% on Tuesday after closing at 11% on Monday, it would be the first time it has closed over 10% for two days in a row. Over the last four days, the contract has gained over 27%, its biggest four day increase since it hit 33% in November 2018. November futures, which will soon be the front-month, were up 49 cents to $6.22 per mmBtu.
The premiums of futures for November 2021 over October 2021 and March 2022 over April 2022 both rose to record highs this week.
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