Business News Asia
This winter has attracted more investors to the natural gas market than ever before. The price of natural gas futures has risen this year to its highest level in seven years. Meanwhile, prices for liquefied natural gas (LNG) have also reached new highs.
Normally, natural gas prices begin to rise in the winter. But this year, gas prices have risen more than ever since the beginning of spring, with natural gas prices now above $5 per mmBtu.
According to climate experts, this year’s winter could be the coldest in years. As a result, natural gas prices have been on an upward trend since the beginning of the winter due to increased demand for natural gas.
Natural gas missed the $6 target in the summer
Last week, natural gas futures peaked at just $5.65. This year, natural gas prices have already risen 88%, the highest increase among all commodities. Natural gas prices have not yet been able to reach their target of $6.
According to the U.S. Energy Information Administration (EIA), natural gas reserves are expected to increase by 75 bcf during the week of September 17. This compares with 83 bcf the previous week and 74 bcf in the latest five-year average (2016-2020).
Total natural gas capacity has not returned
Oil and natural gas production impacted by storms Ida and Nicholas in the Gulf of Mexico has also not been fully restored. The Bureau of Safety and Environmental Enforcement (BSEE) reported yesterday that about 24.3% of natural gas production in the Gulf of Mexico has not yet been restored.
Wärmere Temperaturen um die Herbstjahreszeit könnten aber zu Lockerung in den U.S. Gaspreisen führen. U.S. Temperaturberichten zufolge können für Oktober wärmere Termperaturen erwartet werden können.