In Huge Turnaround, Natural Gas Prices Have Doubled Since June

The world was oversupplied with natural gas during last spring’s lockdown, but that’s changed in recent months.

By Alexandra Hart & Caroline CovingtonOctober 12, 2020 4:35 pm,

Much of the oil and gas industry has been hit hard by the pandemic. But some sectors, like liquefied natural gas exports, have rebounded quite significantly since last spring.

Matt Smith, director of commodity research for ClipperData, told Texas Standard that after natural gas prices dropped in June to about $1.50 per mmbtu – the lowest in 25 years – they rebounded significantly in recent weeks.

“We were knee deep in coronavirus lockdown, which meant the world was oversupplied with natural gas,” Smith said. “Fast-forward just a few months later and prices are just shy of $3 … and the winter months are looking considerably higher than that as well.”

What you’ll hear in this segment:

– Why exports of LNG are on the rise

– Whether production of natural gas in the Permian Basin will go up as a result

– How this year’s hurricane season is affecting LNG operations on the Gulf Coast

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