NEW YORK — The 20 percent jump in natural-gas prices in the past month may prompt U.S. power producers to move to coal, as rising temperatures boost air-conditioning demand.
Gas rose to $5.189 per million British thermal units Tuesday, the highest level in almost four months, as Commodity Weather Group, a forecaster based in Bethesda, Md., said the hottest areas over the next two weeks will be the Midwest, South and Mid-Atlantic.
The price of coal is about $4.63 per million Btu, according to Teri Viswanath, director of commodities research at Credit Suisse Securities USA in Houston.
A switch to coal would reduce demand for gas just as power producers enter the busiest season.
Gas became cheaper than coal in March, when prices dropped to a six-month low.
