Natural Gas Prices Rise 29% In September

%NaturalGas was the standout commodity in September, with its price rising 29% during the month on growing demand for power generation and as colder weather approaches.

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Natural gas prices increased at a blistering pace in September as power demand from data centres running artificial intelligence (A.I.) applications explodes.

Overall, the Bloomberg Commodity Index, which is a benchmark composed of 24 exchange-traded commodities, increased 4.3% in September, its first monthly gain since May of this year.

Much of that gain in the commodity index was driven by natural gas prices, which are also surging as colder autumn weather descends on much of North America and Europe.

Natural gas prices have climbed nearly 30% higher in September, including a 5.4% gain to $2.90 U.S. per million British thermal units on Sept. 27.

Analysts see the rally in natural gas prices continuing for the foreseeable future as global demand accelerates.

The world’s demand for electricity grew by 2.2% in 2023 and is expected to rise at an average of 3.4% annually through 2026, according to the International Energy Agency (IEA).

Much of that demand is being fueled by the growth of A.I. data centres. They currently consume only about 4% of electricity in the U.S., but that amount is forecast to explode in coming years.

The growth of A.I. data centres, and their power needs, has helped to fuel a big rally in utility stocks this year.

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