News

Natural Gas Prices Surge Amid Cold Weather and Red Sea Attacks

1 Mins read

U.S. natural gas prices experience an upward surge due to cold weather conditions and recent attacks on Red Sea shipping routes.

Price Spike and Market Impact

Futures for U.S. natural gas witnessed a significant jump of 7% on Tuesday, reaching their highest level since November. The overall increase in prices throughout this year amounts to over 13%. However, natural gas futures faced a slight setback of 2.5% in early trading on Wednesday.

Cold Blasts and Production Concerns

The possibility of cold weather fronts intensifying the demand for gas, coupled with potential disruptions to production, has contributed to the ongoing price surge. These factors have instilled concerns regarding global gas supplies.

Turmoil in the Red Sea

Ongoing turmoil in the Red Sea, which serves as one of the busiest shipping routes globally, further adds to the apprehensions surrounding energy supplies. During an attack by Houthi militants from Yemen, U.S. and U.K. warships successfully intercepted and neutralized 18 drones, making it one of the most significant engagements since the militants began targeting container shipments in November. These militants are protesting against Israel’s conflict in Gaza.

Impact on Global Markets

Being a net exporter of natural gas, the United States currently enjoys a surplus that it sells in global markets. However, the recent attacks in the Red Sea could potentially drive up energy prices, as it becomes more expensive to transport liquified natural gas (LNG) to Europe and Asia.

Oil Market Stability

In contrast, oil prices did not experience significant movement following these developments. The West Texas Intermediate (WTI) crude, a benchmark for the U.S., observed a decrease of 0.5% on Wednesday, settling at $71.90 per barrel. Likewise, Brent crude, the international standard, also faced a decline of the same magnitude, reaching $77.24 per barrel.

Related posts
News

Risk mitigation

4 Mins read
Asian economies should cooperate to jointly lower their overreliance on dollar-denominated assets The economic and trade policies implemented by the current administration…
News

Cloud mining revolutionizes the way to increase the value of crypto assets: Ripplecoin Mining allows XRP, BTC, and Solana holders to achieve daily income | Business Upturn

3 Mins read
Weston, Massachusetts, July 16, 2025 (GLOBE NEWSWIRE) — As the cryptocurrency market continues to fluctuate, more and more investors are looking for…
News

Republicans declared it 'crypto' week in the House. It's not going as planned

1 Mins read
WASHINGTON (AP) — A trio of cryptocurrency bills that had been expected to pass the House this week stalled on Tuesday after…

Leave a Reply

Your email address will not be published. Required fields are marked *