Tuesday, October 7, 2025

Natural Gas Prices Sent Skyrocketing Amid Concerns Over Tight Supplies

The price of natural gas has soared to a 13-year high, as fears over scarcity ahead of the winter months intensifies.

October futures for natural gas jumped by more than 10% on Monday to close at US$5.86 per million Btu, marking the sharpest increase since February. November futures were also up on Monday, hitting a fresh high of nearly US$6 per million Btu— the highest since November 2008. Energy prices have been on a steep rise over the past several weeks, particularly as low reserves in Europe and China ignite fears over widespread shortages ahead of the cold season.

The steep rise in natural gas prices has been unprecedented across Europe, and is expected to be even worse than the US oil price shock of the 1970s, according to estimates from Rabobank. European natural gas prices have soared to above $25 per million Btu, which is a staggering 400% more than the average of the past decade, and significantly higher than the commodity’s price in the US.

To make matters worse, data from the Bureau of Safety and Environmental Enforcement showed that natural gas output has significantly declined in the US, as Hurricane Ida shuttered nearly 25% of gas production across the US Gulf of Mexico, with a full recovery not expected until well into 2022. This has caused US gas stockpiles to fall 6.9% below their historical average over the past five years, as the country prepares to send additional cargo supplies overseas amid renewed export capacities.

With strong demand from Europe and Asia, coupled with no upcoming boosts in output across the US Gulf of Mexico, a detrimental natural gas shortage could materialize in the event that North America succumbs to a cold December. However, if temperatures remain above seasonal during the winter, then the market could face a significant correction.


Information for this briefing was found via Bloomberg and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

NG Energy Releases Reserves Report For Magico-1X, Reveals Plans To Drill Two Wells In Two Months

The results are in for NG Energy (TSX: GASX) for their Magico-1x well. The firm...

Friday, September 2, 2022, 08:42:09 AM

BW Minister Declares Support For German Ban On Russian Energy Imports, Says Germans Can Survive A 15°C Winter If “People Are Dying Elsewhere”

Peter Hauk, Baden-Württemberg Minister of Agriculture and Consumer Protection, has declared his support for Germany’s...

Monday, March 28, 2022, 03:36:00 PM

Natural Gas Prices Collapse After A Dramatic 2022

U.S. natural gas prices have plummeted over the last month. The front-month (in this case,...

Sunday, January 15, 2023, 09:00:00 AM

Demand For LNG Fuel Set To Rise As Global Shipping Companies Look To Upgrade Fleet

Amid the growing economic chaos surrounding the coronavirus pandemic, there appears to be an emerging...

Saturday, September 26, 2020, 11:25:00 AM

Advantage Energy Curtails Up To 130 mmcf/d Of Natural Gas Production

Low natural gas prices have led Advantage Energy (TSX: AAV) to curtail natural gas production...

Tuesday, October 8, 2024, 08:51:07 AM