Curiously, the price of Natural Gas on the NYME is just 36% higher today than one year ago.
With all the Ukraine related turmoil, I would have guessed much higher than that.
Perhaps the New York Mercantile Exchange price does not reflect the European price?
I do not follow world Nat Gas prices closely, so I am just guessing here.
“Perhaps the New York Mercantile Exchange price does not reflect the European price?”
The European price for natural gas ( like the Dutch TTF) rose much more than American prices during the war, but have dropped back significantly from their peak in August, when it became clear that Europe could meet its storage goals before Winter, without Russian gas.
From around 50 a year ago, it peaked near 350 on August 26, and has since dropped below 200.
“Curiously, the price of Natural Gas on the NYME is just 36% higher today than one year ago.
With all the Ukraine related turmoil, I would have guessed much higher than that.”
The price problem isn’t as much in the US, since our lack of facilities constrain what we can export, so most gas here is stuck on the US market.
Where it’s really biting is in Europe, as they’re having to bid against Asia and the rest of the world for the limited supply of LNG, due to their self-imposed embargo of Russian gas. Those prices were insane over the summer (over $500/barrel energy equivalent to crude), and now are somewhat lower (around $300/barrel), but still extremely high.
Where it gets interesting will be when the cold weather starts, as the storage capability of Europe is relatively small and may not be able ride out the lack of incoming Russian gas...at least without a complete shutdown of their society.
There is piped natural gas, and there is LNG.
Europe is attempting to substitute LNG for piped:
https://markets.businessinsider.com/commodities/natural-gas-price - Henry Hub, piped US domestic [comparable to Russian piped]
https://www.cmegroup.com/markets/energy/natural-gas/dutch-ttf-natural-gas-usd-mmbtu-icis-heren-front-month.html - LNG at Dutch main European hub
Henry Hub is at 7.57, TTF is 61.00 for Dec 2022.
Like a choice between the gas station with 4 buck a gallon gas, or the one across the street with 32 bucks a gallon gas.