Market forces are driving up gas prices in the US, but much will depend on winter temperatures
Winter warning signs for US gas market
Upward price pressures may benefit producers, but consumers will be hoping for a mild winter this year
Soaring gas prices in Europe and Asia have understandably taken all the headlines in recent weeks. But conditions are also ripe for a North American gas price hike, especially if there is a repeat of the Arctic cold snap that struck in the early months of 2021. “A cold winter has the potential to send US natural gas prices into the $15-20/mn Btu range for a prolonged period given the inelastic natural of supply and demand currently,” says Matthew Palmer, senior director, global gas, at information provider IHS Markit. The EIA forecasts that gas prices will most likely average $5.67/mn Btu between October and March, the highest winter price since 2007-08. In mid-October, Henry Hub had already
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
