Natural gas prices at new, long-term highs due to supply concerns
During today's session, natural gas prices rose by nearly 10%, reaching the highest levels since 2014. The rally could be fueled by concerns about further supply during the approaching winter season. First, Hurricane Ida in the US has reduced natural gas inventories, while gas production remains relatively limited. This creates the possibility of a price rally ahead of the upcoming heating season. The management of energy companies also informs about potential problems - the economic rebound leading to increased demand with simultaneous supply problems and a difficult winter may lead to a potential increase in natural gas prices. The huge demand can already be seen, among others in the UK and Spain, where electricity prices are at record levels. In the UK, on the other hand, low wind speeds lead to downtime of local windmills, which further strengthens the demand for natural gas.
Natural gas prices have risen sharply this afternoon. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
On a weekly interval, one can see that prices reached levels not seen since 2014! Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
