5/20/2023 0 Comments Gas prices skyrocketUS market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Thummel pointed to how US oil and gas producers are under pressure from Wall Street to spend less on expensive drilling projects and more on dividends and buybacks to shareholders. Supply has failed to keep up with strong demand for gas. “We entered this year at beaten-down levels and we never caught up,” Yawger said. US natural gas production is lagging behindīut the bigger issue for US natural gas is the fact that inventory levels are below historical averages, leaving the market with less of a buffer and driving up prices. “Every spare molecule we can find, we are shipping to the eurozone,” said Yawger. The United States has stepped up its exports of liquefied natural gas (LNG) to Europe in an effort to mitigate the impact of the loss of Russian gas. Natural gas has become a global commodity with the emergency of LNG,” said Thummel. “Higher global prices are trickling down to the US. The national average for regular gasoline has dropped 64 days in a row, according to AAA.Īnalysts say Europe’s natural gas crisis is contributing to the higher natural gas prices in America, although it’s not the main driver. That is roughly seven times higher than prices in the United States.īut that is little consolation to Americans grappling with high prices at the grocery store, clothing stores and at restaurants.Įven as natural gas prices surge, oil prices have tumbled, helping to drive gasoline prices sharply lower. David Paul Morris/Bloomberg/Getty Imagesįor context, Europe’s natural gas prices are trading at levels equivalent to about $70 per million BTUs, according to Andy Lipow, president of Lipow Oil Associates. President Joe Biden called on Congress to suspend the federal gasoline tax, a largely symbolic move by an embattled president running out of options to ease pump prices weighing on his party's political prospects. Natural gas prices have skyrocketed so high in Europe that it threatens to send the continent’s economy into recession.Ī customer holds a fuel nozzle at a Shell gas station in Hercules, California, U.S., on Wednesday, June 22, 2022. The European Union has been forced to lay plans to ration natural gas, a drastic step that will hurt families and businesses. We aren’t.”Įurope’s natural gas prices are seven times higherĮurope’s natural gas crisis is being driven by its reliance on energy from Russia, which has slashed natural gas flows to Europe in response to Western sanctions. They are at risk of running out of natural gas. “Depending on the weather, it could be a challenging winter,” said Rob Thummel, senior portfolio manager at Tortoise Capital Advisors. Not only is natural gas a leading fuel source for the electric grid, it’s the most popular way to heat homes in America. “We’ve had this perma-heat wave cooking the United States,” said Robert Yawger, vice president of energy futures at Mizuho Securities.Īs temperatures drop this fall and winter, the natural gas spike signals sticker shock for families. The US economy didn't get the recession memo The national unemployment rate dropped to 3.5%. economy added 528,000 jobs in July, far more than the 250,000 expected by analysts. According to data released by the Bureau of Labor Statistics, the U.S. A "now hiring" sign is posted at a Home Depot store on Augin San Rafael, California.
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