US natural gas prices witnessed a significant increase on Tuesday; Futures rose 5% to reach a 12-week high, as the peak season approaches in June.

The price of the next June contract for natural gas on the New York Stock Exchange rose by 9.2 cents, or 4.8%, to reach $2.015 per million British thermal units, recording the largest daily percentage increase since January 2022.

This increase is due to several factors, including the approaching summer season, which entails an increase in demand for natural gas to generate electricity. Which pushes prices to rise, and gas inventories in the United States to decline.

The world is also witnessing an increase in global demand, which includes the increasing demand for natural gas from European countries that are seeking to reduce their dependence on Russian energy, and this leads to an increase in oil prices in addition to weather factors, including the early heat wave that struck some parts of the United States, which played a role in increasing demand. On gas to generate electricity.

Natural gas prices are expected to continue to rise in the coming weeks as the peak season continues.

European countries are looking for alternatives to reduce their dependence on Russian gas, while the United States is trying to increase its production of liquefied natural gas for export to Europe.