It’s not a good time to need natural gas, prices on Thursday reached their highest one-month price point since January 24th, 2011.
The average prices, which rose 3.7% to $4.80 per million British thermal units occurred after natural gas company’s stockpiles less inventory than originally expected.
During their weekly report the U.S. Energy Information Administration announced that inventories rose to 83 billion cubic feet (Bcf) to 2,107 Bcf during the week ending May 27. Consensus estimates put the finally expected number at 90 bcf.
The main reason cited for the rise in the cost of natural gas is higher demand for air-conditioning as many parts of the country are experiencing hotter than normal heatwaves which has caused a bullish market, pushing up the cost of natural gas on the open market.