• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 hour America should go after China but it should be done in a wise way.
  • 7 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 7 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 7 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 6 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 days Putin and Xi Bet on the Global South
  • 7 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 8 days United States LNG Exports Reach Third Place
  • 8 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Natural Gas Jumps To $10 For The First Time Since 2008

  • U.S. natural gas futures jumped briefly above $10 per MMBtu on Tuesday morning.
  • U.S. natural gas prices have soared in recent weeks as Europe scours the world for non-Russian gas supply.
  • Henry Hub gas prices have rallied by 70% since the end of June

U.S. natural gas futures hit $10 per million British thermal units (MMBtu) early on Tuesday, jumping briefly above that threshold for the first time since 2008 as the energy crisis in Europe is worsening, and EU gas prices surged to another record today.

As of 8:43 a.m. ET, the front-month U.S. benchmark natural gas price at Henry Hub was up by 0.60% at $9.737/MMBtu, having hit $10/MMBtu earlier in the day.  

U.S. natural gas prices have soared in recent weeks as Europe scours the world for non-Russian gas supply—mostly U.S. LNG—to fill gas storage sites in time for the winter heating season.

After a slump in early June due to the Freeport LNG force majeure, U.S. benchmark gas prices have rallied by 70% since the end of June, hitting last week their highest level since August 2008 at above $9.30/MMBtu.

This week, the prices exceeded $10/MMBtu as Europe braces for another halt of Russian gas deliveries via the Nord Stream pipeline to Germany for three days between August 31 and September 2. Germany and other EU countries are concerned that supply via Nord Stream—now at just 20% of the pipeline capacity—would be further cut or completely halted.

U.S. gas prices are rallying, but it’s nothing compared to the surge in Europe’s gas prices, which set another record on Tuesday, beating Monday’s record-high price.

Europe’s benchmark gas prices at the Dutch TTF hub soared by another 13% overnight to close to $297.55 (300 euro) per megawatt-hour, a fresh record high. The price has now doubled in just one month and currently sits 14 times higher than the average for the last decade, according to Reuters estimates.

The much higher gas prices in Europe, at around ten times higher than the U.S. benchmark in MMBtu terms, are set to pull more LNG exports from the U.S. to Europe, potentially further stoking the rally in U.S. natural gas prices. In addition, the U.S. domestic market offers bullish catalysts for local gas prices as domestic production remains flattish, gas demand from the power sector is strong in heatwaves, and stocks in storage are lower than normal, despite the outage at Freeport LNG, which has made available more gas for domestic consumption.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News