When crude oil prices fell nearly 2% on Monday, the price of natural gas jumped close to 8% and observers suggest it’s a sign of things to come. If anything, don’t expect them to fall.
At the close of stocks Monday natural gas prices gained 7.51% on a 29 cent increase to $4.12 per MMBtu. It was followed Tuesday by another gain of 23 cents or 5.53% to reach $4.35 per MMBtu.
Natural gas prices have skyrocketed more than 160% compared to a year ago, thanks in part to the extreme cold weather we’ve experienced this winter. Writing for OilPrice.com, Tsvetana Paraskova stated, “Going forward, prices in both the U.S. and Europe are set to remain high even after the end of the heating season in the northern hemisphere, as Europe will need to stock up much larger volumes of gas ahead of the next winter. And most of this will come from LNG imports, mostly from the U.S.”
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