US gas contracts continue to rise to historical levels, setting more records in light of the impact of the ongoing war between Ukraine and Russia.
US natural gas futures jumped more than 8% to a nearly 13-year high on Monday as power plants and liquefied natural gas export plants consumed more fuel.
US gas contracts for June delivery ended the trading session up 66.1 cents, or 8.2%, to settle at $8.744 per million British thermal units, the highest closing level since it recorded a 13-year peak of $8.783 on May 5.
And US gas contracts are up from $3,730 at the start of 2022.
With its gains today, US gas futures are up regarding 135% since the beginning of the year, as global prices keep the highest demand for US liquefied gas exports strong since the Russian war with Ukraine on February 24.
Gas is traded around $27 per million thermal units in Europe and at $22 in Asia.
The demand for US exports of natural gas has increased as a result of the Russian-Ukrainian crisis, which has put pressure on the industrial sector and increased the costs of many US industries.
Executives at a number of industrial companies argue that the United States should stop exporting natural gas and prioritize its own needs, but gas producers are pressing for more export capacity.
The CEO of Huntsman Chemical Company, Peter Huntsman, stressed that the rise in gas prices leads to an increase in the specialized costs that produce polyurethane used in the electronics industry, building materials and furniture, according to Forbes.
Pressure is expected to continue on the industrial sector in the United States, which is exporting more gas to Europe, to make up for the lack of Russian gas supplies following the imposition of sanctions.
Gas production in major US regions has slowed, due to insufficient pipeline capacity.
