Natural gas prices have risen by 6 percent this week. It is trading at a 4-month high and have seen strong gains in the previous one month as well, where natural gas prices gained up by 9 percent.
The immediate trigger for the natural gas prices rising is a very strong demand continuing from the US. There is a forecast of warm weather for the next couple of weeks and that would mean more air conditioning demand to come in, and that is where you have the natural gas demand and prices come in.
The other important factor is a slight decline in the US inventories and then there are record pipeline exports happening to Mexico.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.
(Edited by: By Dipika)
First Published: IST