Jul 22, 2022 - Economy & Business
Heat wave drives surge in U.S. natural gas prices
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.