Natural Gas Prices Soar

Natural gas prices jumped 9% yesterday to the highest level since 2008.

As the Federal Reserve meets to discuss how to deal with rising inflation, soaring energy prices continue to create problems. Natural gas prices jumped 9% yesterday to the highest level since 2008. 

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.

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