U.S. natural gas surged Tuesday to the highest level in nearly 14 years as Russia’s invasion of Ukraine wreaks havoc on global energy markets.

Henry Hub prices jumped more than 9% at one point to a session high of $8.169 per million British thermal units (MMBtu) during morning trading on Wall Street, the highest level since September 2008.

The contract later pulled back from its high, ending the day at $7.954 per MMBtu for a gain of 6.4%.

Campbell Faulkner, senior vice president and chief data analyst at OTC Global Holdings, said the increase was sparked by a “flurry of tighter market conditions,” including the European Union considering a sixth round of sanctions against Russia that could include the nation’s energy complex.

In addition, production is down in the U.S., and gas in storage is 21% lower than at this time last year.

 

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Source: CNBC