for natural gas prices
Despite the abnormally low level of gas sitting in storage, natural gas prices have barely moved. Shale gas drillers continue to add supply, which will likely allow the U.S. to avoid a supply crunch this coming winter.
Despite recent bullish developments and the sharp increase in LNG exports, the U.S. natural gas market is expected to remain well supplied throughout 2018.
Despite setbacks for the industry, the U.S. shale gas revolution still persists, with the Marcellus play thriving, drillers using more efficient techniques, and exports possibly rising over the long term.
Henry Hub spot prices are up to roughly $3.20/MMBtu, up more than 100 percent from the March low point and up 15 percent since September. Looking forward, the market could grow tighter still.
Experts say that relatively low prices for natural gas and high domestic production provide the right conditions to bring about a greater penetration of NGVs in the country’s automobile fleet.
Brynne Kelly, an independent portfolio manager, speaks to The Fuse about Twitter, oil and gas prices, and the evolving nature of oil markets.
Natural gas prices in the U.S. for August delivery climbed to $2.90 per million Btu (MMBtu) on the last day of June, capping a 30 percent rally in just one month. Today’s prices are also the highest in nearly a year, ending an extraordinary run in which spot prices stayed below $2/MMBtu for much of that time.
Natural gas prices have quietly fallen to dramatically low levels, eclipsing even the rock-bottom prices seen years ago when the shale gas revolution took off.
Current low prices for natural gas and the ongoing production boom in shale gas should provide the perfect impetus to boost NGVs in the country’s automobile fleet.
U.S. oil production has received a lot of attention lately for stalling out and beginning to decline, but the U.S. shale gas revolution also appears to have also slowed down, at least for now.