The time is coming when the natural gas market is gaining momentum. In the near future, gas prices will experience increased volatility. It’s all the fault of low gas reserves in the USA before the heating season, as well as accelerating inflation. Will everyone be able to survive the winter normally?
Concerns about reserves are growing and fuelling speculative interest. Around 2bn cubic feet of gas are not yet available to the market because they are in the waters of the Gulf of Mexico. There is a new Hurricane Nicolas ahead, which traders have already started watching. What it will turn into, we will see in the near future. Perhaps the Gulf of Mexico will rest next. Also, China has started buying gas in fairly large volumes as it feels the need for it. Production is picking up at a good pace.
The inflated gas prices have benefited the USA, as LNG exports have increased at a good enough price, but already now a representative of the US Department of Energy Security stated that an increase in LNG supplies to Europe is out of the question.
There comes a time when alternative energy sources are starting to come into play. First of all, it is coal and renewables. The second is the increase in shale gas production and the development of new sources, which will inevitably lead to environmental problems. After all, in order to extract shale gas, huge quantities of water must be used, which will pollute groundwater, and large quantities of methane will be released into the atmosphere.
How the battle between all the energy sources will go is hard to predict. The winter ahead, what it will be, you can find out very soon from the official forecasts. Until the big players in the market come to some kind of compromise, there is no chance for gas to get cheaper.
04.00 China retail sales for August
08.00 UK Consumer Price Index for August
14.00 EU industrial production for July
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