With the winter season fast approaching in both Europe and the U.S. and with a lot of people in both places using gas for heating, the price outlook for gas does not look good from a consumer’s perspective. A Reuters column noted that “U.S. gas prices are up by a whopping 300 percent from a few years ago when gas was cheap because it was abundant.” (Related: US headed for serious natural gas shortage and high prices this winter, experts warn.)
Sanctions on Russia have made it more difficult to acquire the natural gas necessary for Europe, with Germany suffering the most at this time. But if the U.S. sends too much natural gas there, then it could see itself in a similar situation pretty soon.
Meanwhile, natural gas prices in the U.S. dropped significantly after trade unions and railway companies reached a tentative deal that averted a potentially devastating strike.
Natural gas prices fell by nearly a dollar per million British thermal units (mmBtu), but inventories remain below the seasonal average and producers are beginning to struggle to meet demand, both at home and abroad.
Inventories remained the second-lowest for this time of the year for the last 12 years, the Reuters column noted. It added that there were no signs of improvement in the level of inventories despite the rise in prices.
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