US gas prices hit 14-year high

U.S. natural gas futures have risen above $10 a barrel for the first time since 2008 amid concerns that global stockpiles will not be sufficient to meet winter demand. U.S. natural gas prices have climbed above $10 per million British thermal units (MMBTU), the highest since 2008, continuing a sharp rally fueled by concerns that stockpiles for heating and power plants will not be sufficient to meet winter demand. Russia’s invasion of Ukraine has deepened the global energy crisis, sending gas prices soaring around the world as countries scramble to secure cargoes of liquefied natural gas that are insufficient to meet demand. European gas supplies have become a concern after an unusually hot summer, with the continent becoming increasingly reliant on cargoes from exporting countries, including the United States. It was announced that gas supplies from the critical Nord Stream Pipeline, which provides the main flow from Russia to Germany, will be cut for 3 days starting August 31 due to maintenance work, and this has raised concerns that supplies may not continue as planned after maintenance. In the US, as scorching heat increases electricity demand, stocks have fallen below normal levels, while production from shale gas fields has grown at low levels. While US exports have declined after a critical terminal in Texas was damaged in early June, they are expected to return to their previous levels when the facility resumes operations in October. In previous years, power plants switched to coal when natural gas prices rose, but this practice has recently been decreasing due to increasing concerns about climate change. It is stated that this situation could mean that a traditional ceiling that prevents gas prices from rising rapidly in the US will largely be eliminated.