yolowire.com - The price of NaturalGas has risen 7% and hit a five-month high on forecasts of extreme heat across much of the U.S. this summer.
Natural gas prices are currently at $3.129 per million British thermal units on the New York Mercantile Exchange, the highest level since January 12 of this year.
The spike in natural gas prices comes after the U.S. National Weather Service forecast hotter-than-seasonal temperatures for most of the U.S. over the next six to 14 days, while the Southwest and California struggle under record temperatures.
On X, formerly Twitter, the National Weather Service stated: “Dangerously hot temperatures will return to the southwestern U.S. and central valley of California Tuesday and Wednesday then spread across the southern & eastern U.S. the second half of this week. Excessive heat is possible again Tuesday across coastal Puerto Rico and the U.S. Virgin Islands.”
Analysts say that the above-average temperatures are likely to increase demand for cooling throughout America, leading to a surge in demand for natural gas.
Earlier this year, natural gas prices slumped considerably as warm weather this winter reduced heating demand in both North America and Europe.
The United Nations (U.N.) has forecast that 2024 could be the hottest year on record.