European Gas Prices Matter Now. The Beacon, 09/27/2021

The Headline:   Gulf drilling rigs continue to open back up, there is little reason to think a hurricane will threaten the Gulf this week, and we had a larger-than-expected natural gas storage injection … and prices went up anyway.   Why?                   

The Bottom Line:    Because gas prices in Europe and Southeast Asia have gone through the roof.   On Thursday, European gas closed near $24/mmbtu, and Liquified Natural Gas (LNG) exports are extremely strong.   Gas for US consumption doesn’t need to be compressed into a liquid for transport, and there is only so much capacity to complete that process, but the price competition is still pulling US energy prices up beyond what the traditional fundamentals would support.   Don’t get caught looking at the wrong things - talk to Lighthouse ASAP.           

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