Despite a slight reversal in trend Thursday spurred by a larger than expected injection into U.S. storage inventories, natural gas prices have been on a tear and are at eight-year highs.

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The October New York Mercantile Exchange (Nymex) contract jumped more than 50 cents between Monday and Wednesday, touching new highs for the year on each of the first three days of the week.

Still, the latest price action “may be just the tip of the iceberg as to what’s in store this winter,” NGI’s Price and Markets Editor Leticia Gonzales said during a recent conference. Demand for gas is soaring globally, and U.S. producers are keeping a lid on production. After closing 2019 at around 96 Bcf/d, U.S. output dropped to an average below 91 Bcf/d in 2020 and has held near that level so far...