Natural Gas News – October 29, 2021
Why is Asia paying five times more than America for natural gas?
It’s a phenomena rarely seen in commodity markets. As natural gas prices skyrocket across the world, Europe and Asia are paying up to nearly six times more for natural gas than the U.S., as a lack of American liquefaction capacity fragments global markets. On Tuesday in New York, front month contracts for Henry Hub gas futures closed above $5.88 per million BTUs, more than doubling in the year to date. The fuel topped $6.46 on Oct. 6, marking the highest level since 2014. On top of climbing air conditioning demand in the summer, production in some places is still at a standstill due to hurricane damage. But even though they are higher, U.S. natural gas prices lag sharply behind global bench marks. In Europe, the index price for the fuel soared sixfold over a year to the equivalent of aroun… For more info go to https://s.nikkei.com/2ZDhFWY
Natural gas surges as U.S. forecasts stoke winter supply jitters
U.S. natural gas prices soared the most in more than a year, erasing much of a recent decline, as end-of-month trading boosted volatility and forecasts for chillier weather revived concerns about tight supplies. Henry Hub gas for November delivery gained 11.7%, the biggest gain since September 2020, to $5.898 per million British thermal units. Prices are bouncing back from recent declines, although they’re still shy of 12-year settlement high reached earlier this month. Traders were closing out bearish positions before November options expire on Tuesday. While mild October weather allowed producers to inject more gas into storage than usual, forecasts for a cooler early November in the Midwest and East are a reminder that supplies of the heating and power-generation fuel are still below normal. Meanwhile, the U.S.… For more info go to https://bit.ly/3mmvKkm