NEW YORK: US natural gas futures jumped about 6% to a 12-week high on Monday with the start of the higher priced June contract as the front-month and forecasts for more demand than previously expected due in part to an increase in feedgas at Freeport LNG’s export plant in Texas.
On its first day as the front-month, gas futures for June delivery on the New York Mercantile Exchange rose 10.7 cents, or 5.6%, from where the June contract closed on Friday to settle at $2.030 per million British thermal units (mmBtu) on Monday.
That was the front-month’s highest close since Feb. 5 and put it up about 26% from where the May contract closed when it was still the front-month on Friday.
That was also the contract’s biggest daily percentage increase since January 2022 when it jumped by a record 46.5% around the time the front-month switched from February to March.
In the spot market, power and gas prices in many states, including Texas, California and Arizona, have traded below zero several times over the past month or so due to low demand, ample renewable power supplies and pipeline outages and other work that has trapped gas in Texas.
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