Natural gas prices at new, long-term highs due to supply concerns
During today's session, natural gas prices rose by nearly 10%, reaching the highest levels since 2014. The rally could be fueled by concerns about further supply during the approaching winter season. First, Hurricane Ida in the US has reduced natural gas inventories, while gas production remains relatively limited. This creates the possibility of a price rally ahead of the upcoming heating season. The management of energy companies also informs about potential problems - the economic rebound leading to increased demand with simultaneous supply problems and a difficult winter may lead to a potential increase in natural gas prices. The huge demand can already be seen, among others in the UK and Spain, where electricity prices are at record levels. In the UK, on the other hand, low wind speeds lead to downtime of local windmills, which further strengthens the demand for natural gas.
Natural gas prices have risen sharply this afternoon. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
On a weekly interval, one can see that prices reached levels not seen since 2014! Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
