U.S. Natural gas has been set as the most expensive energy commodity for the first time in more than a decade as the COVID-19 pandemic continues to disrupt demand in other regions.
U.S. Gas futures gained up to 10% to $1.815 per million BTU in April. The surge comes as investors expect the record plunge in oil prices to drive U.S. companies to halt drilling operations in which gas is extracted as a byproduct.
Oil prices in Europe and Asia fell to new lows due to oversupply and dwindling consumption caused by the pandemic. Asia’s benchmark LNG price fell to $1.94 per million BTU on Thursday, according to S&P Global Platts. Meanwhile, gas futures in the United Kingdom closed at $1.71.
U.S. gas became the cheapest since the shale revolution, which turned the country into the world’s largest producer. This resulted in major export terminals being built and financed by customers attracted to the low-costing contracts.
Currently, U.S. gas exporters are being met with challenges to increase purchases from Europe and Asia due to the record surge in gas prices. An LNG shipment in Asia was sold in the high-$1 per million BTU range, marking it as the cheapest spot cargo transaction ever recorded in the region.
Almost 12 U.S. fuel shipments for June delivery were cancelled and many speculate that an additional 20 shipments could be canceled within the month.
The Dollar fell to two-year lows on Friday, heading to its lowest decline in 10 years as concerns mounted over the economic recovery of the U.S. amid a second resurgence of the COVID-19 pandemic. The Dollar index plunged to 92.777, on course ...
Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption. Brent crude gained 0.3%, trading at $43.08 ...
Japan’s Finance Minister Taro Aso expressed worries about the yen’s continual rise, calling it “rapid” and hinting at the strong currency’s impact on exports as Japan struggles through a recession. The yen’s ...
The second quarter had seen Australian consumer prices dropping by a record. This could be attributed to the coronavirus crisis dragging child care cost and petroleum prices, inflicting a serious damage to years of growth toward higher inflation. Last ...
On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement. The Stoxx Europe 600 ...