New York October 15 2022: Natural gas prices in the US capped their longest string of weekly losses since 2001 as mild weather and record production ease fears of a winter supply crunch — at least for now.
US gas has tumbled for eight straight weeks, with prices down more than 30% from a 14-year high in August. Futures in Europe, a region increasingly reliant on American supplies of the heating and power-plant fuel after Russia’s invasion of Ukraine, are also down on rising stockpiles.
The pullback comes in a year of historic volatility for gas prices as the war in Ukraine intensified a global energy crisis, depleting inventories in the US and overseas. But the downturn may be short lived. US gas stockpiles are still below normal for this time of year, and while Europe has built a cushion for the winter, it’s still at risk of fuel rationing without key Russian supplies.
“Globally, we’re feeling better about ourselves and about the natural gas storage levels that we have now,” said Gary Cunningham, director of market research at risk management firm Tradition Energy. Traders have so far priced in the outlook of mild temperatures in Northern Hemisphere, which would help curb demand, he said. “All of that can change very quickly and very dramatically if we have a cold start to winter.” Gas for November delivery settled down 4.3% at $6.453 per million British thermal units on the New York Mercantile Exchange.
