PRESS ROOM
Natural gas rallied on expectations of high temperatures in the US
Friday 25th June '21
With above average temperatures predicted for most of the United States for July (National Oceanic and Atmospheric Administration, June 2021), the demand for electricity to power air-conditioning could also be above average. 40% of electricity in the US is made using natural gas (U.S. Energy Information Administration estimate, February 2021). More than 35% of natural gas consumed in the US goes into electric power, which is the largest source of natural gas demand by sector (U.S. Energy Information Administration). In 2020 electricity was the only sector to have increased its demand for natural gas. Natural gas prices have rallied sharply in the past month reflecting this potential for high demand, which marks a (seasonal) six-year high.