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Okra_Smart t1_j9vfxx3 wrote

Reply to comment by NRA-4-EVER in Close to Impossible for rise in Natural Gas prices to end by [deleted]

Natural gas is widely used for various purposes: it is the cheapest alternative for industrial purposes. For example the TSLA factory in Berlin uses natural gas. I don't know about the other locations. Other businesses use natural gas too.

Also, natural gas could be used for the purpose of cooling down. For example, the energy consumption rises a lot during hot days because of the extensively using of air conditioning.

So there are a lot of reasons why it is simply not true, that natural gas should be rising only during winters. Natural gas surprisingly can rise a lot during hot summers.

But the main price driver is the production and export of natural gas. For example, USA produces nowadays much, much more natural gas than 15 years ago and this is clearly visible in the charts. Now that Europe is going for the cheap US natural gas, the price is going up and reaching levels, unseen for almost 15 years.

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NRA-4-EVER t1_j9vsg8w wrote

Ok, I searched the internet and couldn't find a single source claiming that natural gas consumption doesn't go down going into summer (drop off starting in March). It goes up with high temperatures in the summer (never reaching the winter highs). So if it always goes down considerably next month, why would we expect the price to go up right now?

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Nukeboml3 t1_j9wgy72 wrote

It’s going up in summer not because of temperatures but because countries are buying it for next winter . They need to fill up what was burned during winter/spring/summer . Then they get there delivery of LNG right before winter .

The price isn’t driven by charts but by politics and seasons.

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Tyrannofelis t1_j9vhpin wrote

What if Russia ends their stupid war this year?

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Okra_Smart t1_j9vi0oo wrote

Still bullish after a complete reopening of Freeport LNG. Europe backed away from russian gas for good and will be importing US gas in the next few years, even if the war ends today.

Germany scrapped completely Nord Stream 2, realized it was too dependant on russian gas and the pipe will probably never see a single day of operation.

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