US gas prices spike on increased exports to Europe

US natural gas prices reached their highest levels in more than 13 years on Monday, with futures jumping over 3% to trade as high as $7,569 per million British thermal units. Record shipments of liquified natural gas (LNG) to Europe, in order to replace Russian supplies, have been boosting domestic prices.

“With momentum firmly bullish and the market ill-equipped to handle any further bullish shocks, notable continued gains for natural gas remain likely this summer,” EBW Analytics said, as quoted by CNBC. The firm added that a “bullish weather shift” has sent the US market into “overdrive.”

For the year, US natural gas prices are now up 102%, which is adding to inflationary concerns across the economy. Labor Department data showed last week that the nation’s inflation is at a 40-year high, with soaring gas and food prices driving the increase.

Washington is blaming the surging prices squarely on Moscow, with President Joe Biden saying last week: “I am doing everything within my executive power to bring down the Putin price hike.”

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