Cold weather and demonization of coal by global warming alarmists is causing natural gas prices to skyrocket.
“The rally has been supercharged by a surge in demand — from an unusually chilly spring that stoked heating needs, to a spike in exports as Europe tries to wean itself off Russian gas amid the war in Ukraine. That’s cut U.S. inventories to almost 20% below typical levels. At the same time, traders are staring down forecasts for a hotter-than-normal summer that will almost certainly bolster demand for gas to generate electricity as air conditioners get cranked higher. But what’s really getting the bulls excited is that the market has lost much of its ability to curb consumption through higher prices.
In the past, when natural gas became too expensive, power-plant owners would just dial down some of their gas-fired generators and turn up those burning coal, effectively putting a ceiling on demand and preventing prices from skyrocketing. But utilities’ move away from coal is shrinking inventories and drastically reducing their ability to pivot from gas, leaving the market more vulnerable to wild moves.”
U.S. Natural Gas Is on a Path to `Crazy Prices’ With No Relief in Sight
