InvestorQ : Why have natural gas prices risen so sharply in the last 6 months?
Arya Nanda made post

Why have natural gas prices risen so sharply in the last 6 months?

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Anjana Aiyar answered.
3 months ago
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Natural gas have been on a solid rally in the last six months. In fact, if you just look at the natural gas prices traded on the IGX between April and September, then in the last 5 months alone, the price of natural gas has gone up sharply from $6.1 MMBTU in April 2021 to at $13.8 per MMBTU currently. That is a spike in gas prices of more than 100% in just five months, something unprecedented in India. What has triggered this rally?

It looks certain that for the next six month period, the government will hike the price of natural gas. The price of spot gas in India is benchmarked to the global prices of natural gas. The reason for the spike in price of gas is that the supply constraints are back in action. Gas inventories have fallen below 5-year averages due to hurricanes resulting in lower production in the Gulf of Mexico. Consumption has grown much faster with the recovery.

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