US natural gas prices jump to the highest level in 12 weeks

US natural gas futures jumped about 5% to the highest level in 12 weeks on Monday, with the start of higher-priced June contracts.

According to Reuters, on the first day of its closest month, gas futures for June delivery on the New York Stock Exchange rose 9.2 cents, or 4.8%, from the close of the June contract on Friday to $2.015 per million British thermal units.

This caused the contract to rise by about 25% from the closing level of the May contract when it was still the closest month to maturity on Friday, which also put it on track for its highest close since February 6th.

This would be the largest daily percentage increase for the contract since January 2022, when it recorded a record jump of 46.5% as the closest maturity month shifted from February to March.

In the spot market, electricity and gas prices in several states, including Texas, California and Arizona, traded below zero several times this spring due to low demand, abundant renewable energy supplies and pipeline maintenance that led to gas being trapped in Texas.