U.S. natural gas on Tuesday reached its lowest price since September of 2020.
After being adjusted for inflation, a surplus in production resulted in futures falling below $2. Prices fell 10% to a low of $2.06 British Thermal units (BTU) on the New York Mercantile Exchange, the lowest price since September 2020 and a 79% decrease in value from August 2022. (RELATED:Russia Conducted Failed Intercontinental Ballistic Missile Test While Biden Visited Ukraine: REPORT)
Tuesday marked the one-year anniversary since Russia invaded Ukraine. The invasion sent massive spikes in prices across many industries as it became clear Europe would not be able to purchase goods from Russia. The Biden administration then placed numerous sanctions on Russia with hopes to hinder the economy, which sent the value of natural gas skyrocketing.
Mild temperatures have also sent ripples in the demand for natural gas this winter especially in regions that once anticipated snow are not seeing any. Many local economies built up their preserve in anticipation of a cold winter but have not needed to rely on their extensive supply, Chesapeake CEO Nick Dell’Osso told Market Insider.
Despite record colds for a small stretch in late December. In January, Europeans saw their warmest month on record and North Americans witnessed their fifth warmest on record, according to National Oceanic and Atmospheric Agency.