Follow US Immigration and US Investment: According to a report on the Financial Times website on February 19, persistent cold weather has caused US natural gas prices to rise to their highest level in nearly five years. In addition, US natural gas storage levels are lower than usual. The shortage of US natural gas supply remains a cause for concern.
According to reports, the price of natural gas at the Henry Hub in Louisiana reached $6.25 per million British thermal units on the afternoon of February 19, an increase of 13% in just one day. This price is double the low price at the beginning of 2013 and more than three times the low price in the spring of 2012.
Analysts state that due to the impact of this year's persistent cold weather, US natural gas reserves are far below normal levels, and public utilities and other users have begun scrambling to purchase natural gas. BNP Paribas analyst Teri Viswanath stated that people have become accustomed to assuming that natural gas supply is secure, but now we are truly challenging the notion that natural gas reserves are sufficient. A report released by the US Energy Information Administration shows that natural gas reserve levels for the first week of February 2014 were 27% lower than the five-year average for the same period.
The report states that natural gas prices have been low for many years, and natural gas developers have had to turn to more profitable oil fields to secure profits. Although US natural gas prices are expected to fall after the cold weather ends, analysts believe that natural gas prices may maintain their highest average level since 2008 this year. However, influenced by US environmental policies, the demand for natural gas will increase in the coming years, which may drive an increase in natural gas storage and potentially lower natural gas prices.
