(VIANEWS) – Natural gas prices have more than doubled this year and are expected to rise further, resulting in higher winter heating bills for some customers and higher costs for electric utilities.

Fears of higher inflation have been exacerbated by a sharp rise in natural gas prices in Europe, power outages in the United Kingdom and China, and a rally in crude oil prices.

Aside from electricity and heating demand, natural gas is an important feedstock used in the production of chemicals, fertilizers, paper, and glass, among other things.

Natural gas prices have been caught in their perfect storm of decreasing supplies and increasing demand.

According to the EIA (U.S. Energy Information Administration), natural gas’s share of generation fuel will decline through next year due to an increase in renewable sources, and coal.

Natural gas is expected to remain an important fuel source for many years to come. According to the EIA’s short-term forecast, natural gas will provide 35% of power generation in 2021 and 34% in 2022. According to the government, the average price of natural gas this year will be $4.69 per mmBtu.

Prices have been volatile with an upward trend and traders noted that prices were rising despite forecasts for milder weather and lower demand than previously anticipated over the next two weeks.

Gas prices in Europe and Asia traded roughly four times higher than in the United States due to insatiable demand in Asia and low stockpiles in Europe ahead of the winter heating season, when demand soars.

FXStret reported that natural gas prices rose on Thursday due to rising volumes and open interest. This supports the continued uptrend in at least the near-term. The commodity will now shift its attention to 2021 peak prices at $6.30/MBtu (September 28).

Natural Gas (NG) is currently on bullish momentum. At 05:04 EST on Friday, 1 October, Natural Gas (NG) is at $5.93 and 1.02% up since the last session’s close.

Volume

Today’s last reported volume for Natural Gas is 16791, 99.99% below its average volume of 23635837481.42.

Natural Gas Range

Concerning Natural Gas’s daily highs and lows, it’s 18.778% up from its trailing 24 hours low of $4.99 and 14.355% up from its trailing 24 hours high of $5.18.

More news about Natural Gas (NG).

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