The latest price spike came in response to Russia’s plans to shut down one of Europe’s main fuel arteries for a few days at the end of the month.
The shutdown announced Friday is the latest episode of the so called ‘unplanned maintenance’ along the vital Nord Stream gas pipeline or even an act of economic warfare on Russia’s part in retaliation for Western Europe’s support for Ukraine.
Tweet on latest from the gas price fluctuation
High Demand for U.S. Natural-Gas as prices soars!
— The_Journalbiz (@the_journalbiz) August 23, 2022
Heating-season gas futures double last winter’s price; analysts see even higher prices ahead
Brisk exports of natural gas, which is liquefied and then shipped via tankers, are leading to lower U.S. supplies and higher domestic prices.
The 14-year highs reached this week by U.S. natural-gas futures show the unceasing demand for U.S. shale gas across the Atlantic, and likely point to higher prices ahead.
Surging prices in Europe, weather that remains hotter than normal in much of the country and the heart of hurricane season, when storms can knock out production platforms in the Gulf of Mexico, threaten to send prices higher, analysts and traders say.
“Virtually all of our fundamental and technical indicators continue to flash green lights toward higher price levels,” trading firm Ritterbusch & Associates told clients on Monday, predicting that near-term prices could climb to as high as $11.90.