Natural gas prices in the US exceeded $10/MMBtu for the first time since 2008

Front Month natural gas futures prices (September-booked resource) on the US Henry hub during trading on August 23 exceeded $10/MMBtu for the first time since 2008. Compared to the previous day, prices in the US increased by 2.3%.

When transferred, the cost of gas is about $357/tcm or €34/MWh, which is many times lower than the prices at which gas is traded in Europe.

The main reason for the increase in gas prices in the USA is the record increase in natural gas prices in Europe, caused by the actions of Russia. It will be recalled that Gazprom announced the shutdown of Nord Stream for three days, and traders fear that gas supplies may not be restored.

High gas prices in Europe and Asia stimulate LNG exports from the US. The United States is the largest supplier of LNG to Europe and one of the largest exporters of LNG in the world.

At the same time, demand for natural gas in the U.S. is also rising amid warmer weather, which is driving up gas consumption for air conditioning.