US natural gas prices have fallen by almost 50% in the past year to just over $2 per million British thermal units (mBtu) a ten-year low. Gas production hit a record high in America last year, eclipsing the previous peak in 1973. That was due to new drilling techniques that have allowed explorers to tap hitherto inaccessible deposits.
Inventories are at record highs for this time of year, says Dan Strumpf in Barron's. Heating demand was lacklustre in the winter because of unusually warm weather and it is now falling further with the onset of spring. "Gas inventories will only keep rising from here", which suggests America could run out of room to store natural gas as early as October.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Council tax bills in worst hit areas set to rise by £500 in the next four yearsBranded the ‘ultimate stealth tax’, the council tax burden is increasing across the country, with some areas potentially having to find hundreds of pounds more a year to pay the bill
-
Crypto ETNs are approved for UK retail investorsThe FCA has approved the sale of crypto ETNs to retail investors from October. What is a crypto ETN, and what does this mean for investors?
