# Rising U.S. gas prices will encourage more coal burning

> U.S. natural gas prices have surged after last year's slump, with Henry Hub front-month futures up almost 80% from a year earlier to about $3.00 per MMBtu. Gas has become more expensive than coal after adjusting for efficiency, so power producers are running gas plants for fewer hours.

- Date: 2021-05-14 · published 2021-05-14T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/47266-rising-u-s-gas-prices-will-encourage-more-coal-burning
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Higher gas prices shift power generation toward coal, which tightens gas demand from power plants over the summer. Feed buyers see this mainly as an energy-cost signal that feeds into fertilizer and processing costs.

## Read by commodity

- NATGAS: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/business/energy/rising-us-gas-prices-will-encourage-more-coal-burning-kemp-2021-05-14/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.