U.S. natural gas hit its highest price level in more than 13 years and is trading up again Wednesday, adding to energy cost woes.

Nymex futures closed at $7.95 per mmBtu on Tuesday and are trading in the $8 per mmBtu range again Wednesday morning. The last time prices were at this level was in the fall of 2008.


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By comparison, natural gas futures spent most of the 2010s below $5 per mmBtu — in some cases well below $3 per mmBtu. The current price represents a $4.98 increase from a year earlier.

Prices have ticked up fairly consistently over the last month, although U.S. natural gas was largely shielded from the immediate spikes that struck oil markets in the weeks immediately following Russia's invasion of Ukraine.

Energy costs have risen by about a third over the past year and have driven broader inflation, which has dragged down President Joe Biden's approval ratings and undercut support for his agenda.

Market analysts have pointed particularly to sustained cold temperatures and record-high liquefied natural gas production, which have together led to net withdrawals from storage, driving prices up.

Production is up, however, and is headed for a second straight record year driven by strong domestic demand and strong demand among the Europeans for U.S. LNG.

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Natural gas is not alone in its trading high. Oil prices remain above $100 per barrel, and diesel marked a new record-high price on Tuesday.