By John Kemp, Senior Market Analyst

U.S. gas prices have climbed to their highest seasonal level for 14 years as hot weather and demand from electric generators has coupled with strong exports to Europe to keep inventories below the pre-pandemic average.

In real terms, front-month futures for deliveries at Henry Hub in Louisiana are trading at more than $8 per million British thermal units compared with over $4 at the same point last year and the highest since 2008.

Cumulative cooling demand since the start of the year in the Lower 48 states has been the highest since 2018, according to data from the U.S. Climate Prediction Center.