There is widespread reporting of a sudden price shock in natural gas futures in U.S. markets for distribution, wherein the gas contract for February delivery jumped by 75% on Jan. 27. This spike was largely a brief artifact of speculation, but it covered up a 10% one-day increase in natural gas contracts for delivery in March, a “normal” wholesale purchase. The so-called “Henry Hub” (Louisiana) spot price reached $5/1,000 cubic feet, very high for the United States market in recent years.
The pressure is coming from U.S. exports of liquefied natural gas having reached record levels as some 30 LNG tankers were sent to Europe under the policy of “replacing” Russian gas supplies to Europe and crushing European nations’ objections to punishing Russia by shutting off its gas exports there. Like other such attempts to tell European and NATO countries the British and U.S. rules, Trump talked about it, but the Biden Administration is doing it.
