Russia’s invasion of Ukraine has created havoc in the global energy markets. The European Union is outlining a new round of sanctions against Russia including banning Russian oil and energy products. Natural gas prices crossed $8.00 per million BTUs yesterday, the highest level in 13 years.
The U.S. is the world’s largest producer of natural gas. Production is down and gas in storage is 21% lower than this time last year. Two regions, West Texas and Appalachia, are seeing production slow with companies blaming a lack of adequate pipeline infrastructure. Forecasts for a warm summer and storage challenges are also fueling price increases.
Natural gas was up 30% in April, helped by surging demand for liquified natural gas around the world, adding to inflationary pressures across the country.