From the Editor: Once bitten, twice shy. Price volatility has damaged confidence [Gas in Transition]
From the Editor: Once bitten, twice shy. Price volatility has damaged confidence [Gas in Transition]
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Natural Gas News
From the Editor: Once bitten, twice shy. Price volatility has damaged confidence [Gas in Transition]
Summary
Gas prices have fallen amid muted demand and continued conservation efforts. Buyers remain cautious. A period of price stabilisation is needed to rebuild confidence, but with the Ukraine crisis in flux, stability is in shorter supply than LNG. [Gas in Transition, Volume 3, Issue 5] by: Ross McCracken
Gas prices are falling, following a fervid and sometimes chaotic year in 2022. US Henry Hub gas futures have dropped back to just above $2/mn Btu, having reached a peak close to $10/mn Btu in August last year. The price fall reflects a worrisome slowdown in the US economy, which has become split between depressed industries and a still resilient service sector. Inflation has caused a major round of interest hikes across the world, increasing the cost of new investment. The US has raised its key interest rate 10 times in the last 14 months, pushing the benchmark rate up from near zero to 5-5.25%. Signs are, however, that the upward cycle may have ended. US inflation ...
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.