Natural gas prices are trading at around USD 4 per million British thermal units (mmBtu). It is at close to 31-month highs supported by strong demand for US exports of liquefied natural gas as global gas continues to trade above US prices.
The production is estimated at 91.5 billion cubic feet (bcf) and the demand is higher from the west for cooling amidst rising temperatures.
Natural gas prices in Europe rose to near USD 14 per mmBtu for the first time on record, while in the UK, cost was also near USD 14 per mmBtu, the highest since 2005.
In Asia, the spot price of LNG climbed above USD 15 per mmbtu.
Buyers in Europe have struggled to replenish tanks that are at the lowest for this time of year in a decade and Russia is limiting exports to the continent. Also, Brazilian imports surged to record levels as droughts added to the competition by curtailing power output from hydroelectric dams.
CNBC-TV18’s Manisha Gupta for more details.