Gas Prices Jump on Hot Weather and Global Supply Worries

A sharp rise in U. S. natural gas prices last week surprised many who thought supplies were plentiful. Forecasters now predict a hot week ahead, which could push power plants to burn more gas for air conditioning. Demand might climb higher, but the real spark came from worries over Middle Eastern supplies. A key shipping lane stays blocked, and a major gas plant in Qatar was damaged in attacks, cutting exports. Together, these issues could keep U. S. gas exports flowing longer and tighten world markets. Still, the U. S. keeps pumping out record amounts of gas—over 111 billion cubic feet every day. Storage levels sit well above average, so prices shouldn’t jump too far. Yet the Energy Information Administration expects even more gas by 2026. That could cool prices later. For now, traders are watching how fast Qatar fixes its damaged plant and whether tensions in the Strait of Hormuz ease.Electricity use is slowly rising too. U. S. power plants produced slightly more energy last week compared to a year ago. Most homes and businesses still rely on gas for fuel, so even a small increase matters. Europe’s gas tanks are only a third full, far below normal for May. Without more supplies soon, prices there might rise too. Drilling rigs are a different story. After hitting a two-year peak earlier this year, the count slipped last week by just one. The slowdown is tiny but shows drillers may be cutting back slightly. Over the past year and a half, rigs have climbed from a low point, meaning more gas could hit markets soon.