Europe’s Gas Shortage May Effect Global Prices

Natural gas prices have increased approximately 35% in the past month as many countries worry there is not enough gas stored for the 2021 winter season, especially in the northern hemisphere. Natural gas is an important fuel for heating, with an estimated 40% of U.S. households alone relying on gas through the fall and winter months to stay warm. Europe’s gas reserves are at an all-time low, where the U.S.’s reserves have fallen 8% below the five-year average. The tipping point could come in several months when it becomes clear what type of winter is ahead for Europe, and also the U.S. Some analysts say in an extreme scenario, U.S. prices could double if there is an extended cold spell, particularly in Europe where shortages could get severe. An article published by CNBC takes an in-depth look at the gas shortage and what the nation may expect months ahead. Read the article here.

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