Over the Easter long weekend, the cost of U.S. natural gas surged, with natural gas futures fleetingly breaking above $8 for the first time since 2008.
The rally is the result of a global fuel crunch as suppliers struggle to meet a post-pandemic surge in consumption, worsened by Russia’s war in Ukraine.
The U.S. is exporting as much liquefied natural gas as possible to help Europe reduce its reliance on Russian energy supplies – a design intended to apply financial pressure on Russian President Vladimir Putin, and in so doing encourage him to end his war in Ukraine.
It is hoped that milder weather could bring prices back down to $3-4, although unusually cold weather forecast for parts of the northern United States in the last week of April, may do the opposite in the short term.
Stockpiles of natural gas are currently 18% lower than usual for this time of year.
