Natural gas prices soar in the US on scarcity fears 28, 2021 – 5.50am
Natural gas prices surged to a fresh seven-year high in the US as the expiration of October options added momentum to a rally fuelled by escalating concerns about tight winter supplies.Gas for October delivery gained 11 per cent, the biggest daily jump since February, settling at $US5.706 per million British thermal units, a level not seen since early 2014.US gas stockpiles are 6.9 per cent below the average for the past five years, government data show, and the nation is poised to send more cargoes of the fuel overseas as new export capacity comes online. BloombergTraders were closing out bearish positions ahead of the expiration of October options and futures this week. Shares of gas producers also soared amid broader energy-market gains, with EQT up as much as 12 per cent and Southwestern Energy climbing 24 per cent.Prices for the heating and power-generation fuel are soaring globally with low stockpiles in Europe and Asia sparking fears of shortages as winter approaches. In the US, storm-related supply disruptions have compounded concerns about slow output growth as drillers heed investors’ calls for financial restraint, making it unlikely that shale producers will be able to bail out the rest of the world this winter.“The commodity is getting repriced in terms of its value,” said John Kilduff, founding partner at Again Capital. “There’s such a demand for it around the world.”
Looks like it could be perfect timing for EMP with gas prices set to rise, 3d analysis due with confirmation of estimates and possible upgrade.
