Jul 22, 2022 - Economy
Heat wave drives surge in U.S. natural gas prices
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While crude oil prices are starting to slip, the extreme heat hitting the U.S. has sent natural gas prices up roughly 45% this month.
Why it matters: Even as prices at the pump ease, natural gas will keep utility bills high for the foreseeable future, as Americans run their air conditioners on overdrive.
- Natural gas is the fuel used to generate roughly 40% of U.S. electricity.
Extreme heat across the U.S. — while not quite as bad as over in Europe — is driving electricity consumption sharply higher, and keeping upward pressure on prices.
The bottom line: The energy pinch might be easing — but it isn't over yet.
