New York, May 3 (EFE).- The price of US natural gas on Tuesday spiked 9 percent to $8.14 per million British thermal units (MMBtu), its highest level since 2008, during morning trading on Wall Street amid concern in the energy markets stemming from the war in Ukraine.
During the past two trading sessions, the natural gas price had risen more than 12 percent after in April jumping by almost 30 percent.
Campbell Faulkner, vice president and chief data analyst for OTC Global Holdings, told CNBC that the increase was due to a “flurry of tighter market conditions,” including the fact that the European Union is considering levying yet another round of sanctions on Russia that could target Moscow’s energy sector.
On Monday, in an unusual meeting among EU energy ministers, the governments of Germany and Austria – which up to now had been reluctant to sanction Russian petroleum – expressed their willingness to adopt a new package of sanctions including Moscow’s oil production sector, leaving Hungary as the only EU nation still rejecting such a move.
Meanwhile, EBW Analytics said that there will be more demand for natural gas during the summer because energy consumption will rise as people use their air conditioners more during the hotter weather.
In addition, US production of nat gas has dropped off and the amount of gas currently stockpiled is some 21 percent below what it was at this time last year.
As of 12:30 pm on the Wall Street trading floor, nat gas had risen in price by 7.33 percent to $8.02 per MMBtu.
The energy sector was the market area that showed the biggest gains during Tuesday’s trading in the Big Apple.