The global energy crisis has hit natural gas.
US Natural gas prices surged to the highest level in 13-years. The reasons for the rise in prices are inventories are shrinking, there is a strong export demand to Europe, and the cold temperatures.
Mild weather could bring the prices down, Yahoo News says.
Futures rose to $8.05 per million British thermal units during Asian trading, about double since the beginning of the year.
Inventory woes also come as the US exports “every molecule of liquefied natural gas possible to help Europe reduce its reliance on Russian energy supplies,” Bloomberg said.
The last time prices were this high was August 2008, when hurricanes menaced offshore gas platforms in the Gulf of Mexico and searing summer weather stoked demand for power to run air conditioners. Back then, prices only began to drop when the broader economic outlook turned dark ahead of the historic worldwide financial crisis, according to Bloomberg.
The US’s mission to resupply Europe with LNG is taking critical supplies away from domestic markets and boosting prices sky-high, crushing American households to “save” Germans from shortages, Zerohedge reports.
How is this hurting the Russians again?
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