Rising natural gas prices, resulting from a significant shortfall in gas storage brought about by growing domestic demand and a limited ability to import, have been a particular concern. But since the start of the year, spot prices for natural gas have fallen significantly as the earlier run-up in prices induced a dramatic rise in drilling, a boost to output, and curtailed demand.
Falling spot prices are being reflected, with a lag, in lower contract gas prices paid by U.S. businesses. Electric power costs continued to rise through May, but overall energy prices paid in April and May were down from the levels of the first quarter, suggesting some easing in pressures on profit margins from energy this quarter.