By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The Washington DigestThe Washington Digest
  • Politics
  • Business
  • World
  • Lifestyle
  • Sports
  • Technology
  • Education
  • Contact
  • Submit a News Release
Reading: US natural gas price surges in echo of 2008 commodities rally
Share
Notification Show More
Latest News
Spend with Ukraine: Supporting a War-torn Economy
February 6, 2023
A Look Back at January 24th in Tennessee’s History
January 24, 2023
Explore Washington’s Top 10 Entertainment Destinations
January 19, 2023
Exploring the Controversy Surrounding Pharmaceutical Marketing Agencies in Washington’s Healthcare Industry
January 4, 2023
The Role of Big Data in Modern Public Relations: How PR Professionals are Leveraging Data to Improve Outcomes
January 2, 2023
Aa
Aa
The Washington DigestThe Washington Digest
  • Politics
  • Business
  • World
  • Lifestyle
  • Sports
  • Technology
  • Education
  • Contact
  • Submit a News Release
  • Politics
  • Business
  • World
  • Lifestyle
  • Sports
  • Technology
  • Education
  • Contact
  • Submit a News Release
Have an existing account? Sign In
Follow US
  • Home
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
The Washington Digest > World > US natural gas price surges in echo of 2008 commodities rally
World

US natural gas price surges in echo of 2008 commodities rally

Sonia Reed
Sonia Reed August 25, 2022
Updated 2022/10/06 at 2:29 PM
Share
SHARE

US natural gas prices topped $10 a million British thermal units on Tuesday, a level last traded during a historic commodity price boom in 2008, as shockwaves from Europe’s energy crisis reach into the world’s largest producer of the fuel.

The US gas market is now trading at price levels last hit before shale drilling ushered in a decade of plentiful supplies. The bounty led to construction of coastal terminals to export liquefied natural gas, a reversal of plans for LNG imports made when US prices were higher.

Utilities, industries and traders in the US and abroad are now scouring markets to meet soaring gas demand and fill storage sites before the winter heating season, worried over further cuts to Russian supplies into Europe.

Gas prices in Europe are far higher than in the US as fears of severe winter shortages grip the market, spreading concerns that energy costs will tip economies into recession. Prices on the continent on Monday hit an intraday record €295 a megawatt-hour, equivalent to about $79/mn Btu, although they eased slightly on Tuesday.

James Huckstepp, an analyst at S&P Global Commodity Insights, said that hot temperatures and low output from wind power generators in Europe were also helping to drive prices higher. “The recent hot, dry and relatively still weather is as bullish as it gets,” he said.

A series of heatwaves this summer has sent demand from gas-fired power plants to record highs as electricity generators increase output to meet demand for air conditioning, the US Energy Information Administration said on Tuesday.

Line chart of $/mn Btu showing US natural gas price touches pre-shale boom highs

High international gas prices have also kept US export terminals running at maximum rates this year as traders capture arbitrage opportunities by shipping gas abroad. US exports are set to increase further in October when the Freeport LNG plant in Texas is due to restart after the plant was knocked offline by an explosion in June.

The prices have encouraged more drilling activity, but US gas production has not kept pace with demand. As of mid-August, domestic stocks of working gas stood at 2.519tn cubic feet, about 13 per cent below average.

Most American LNG cargoes this year have been flowing to Europe, to which US president Joe Biden has offered supplies to help offset losses associated with sanctions on Russia over its war in Ukraine.

But competition for LNG is expected to intensify as buyers from South Korea, Japan and China start looking to secure supplies ahead of the winter.

Recommended

Gas prices in the UK have been marginally lower than in Europe for much of the summer as the country has excess LNG import capacity, allowing it to bring in LNG and send it on to Europe via pipelines to help them fill storage sites.

However, the benchmark UK gas price is about $61/mn Btu, similar to offers seen in the Asia market for spot cargoes this week.

At midday on Tuesday, benchmark US gas had pared gains to trade at $9.73/mn Btu, up 0.5 per cent. In a sign of persistent concerns about winter supplies, the contract for delivery in January 2023 traded at $9.9/mn Btu, up 0.4 per cent.

READ NEWS SOURCE

The post US natural gas price surges in echo of 2008 commodities rally appeared first on thewashingtondigest.com.

You Might Also Like

ERP systems will not escape migration to the cloud, according to Gartner

Belle Delphine and Oliver Tree shocked fans with a kiss

Australia news live updates: better off overall test for pay deals on the table at jobs summit

China shuts down counter-drug talks with U.S., fueling fears of more overdose deaths

Probe into Trump’s classified documents faced obstruction, says DoJ

Sonia Reed August 25, 2022
Share this Article
Facebook TwitterEmail Print
Previous Article N.Y.’s highest court to hear Harvey Weinstein appeal
Next Article Commerce sanctions Chinese aerospace companies for military ties
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest News

Spend with Ukraine: Supporting a War-torn Economy
Business
A Look Back at January 24th in Tennessee’s History
Lifestyle
Explore Washington’s Top 10 Entertainment Destinations
Entertainment
Exploring the Controversy Surrounding Pharmaceutical Marketing Agencies in Washington’s Healthcare Industry
Health

You Might Also Like

World

ERP systems will not escape migration to the cloud, according to Gartner

December 14, 2022
World

Belle Delphine and Oliver Tree shocked fans with a kiss

November 14, 2022
World

Australia news live updates: better off overall test for pay deals on the table at jobs summit

September 1, 2022
World

China shuts down counter-drug talks with U.S., fueling fears of more overdose deaths

September 1, 2022
//

In politics, if you want anything said, ask a man; if you want anything done, ask a woman.

Contact Us

If you have any questions please contact us by email:

ask@thewashingtondigest.com

© 2022 thewashingtondigest.com. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?