Natural gas prices, like all commodities, fluctuate based on the supply and demand balance. Supply is determined by factors such as production, pipeline agreements, liquefaction capacities, and LNG terminal capacities, while demand is determined by factors such as air temperatures, seasons, global warming, storage capacities, trade restrictions, and politics. The price graph of natural gas follows a similar trend to Brent crude oil due to its production and market conditions. You can see this trend in the comparison graph. While Brent crude and TTF generally follow a similar price trend, you will be able to observe that American natural gas diverges in some cases. Intercontinental distance can create differences in all these factors, and recent US politics can also be a determining factor in this divergence. With technological advancements such as global warming, environmental awareness, electrification, electric vehicles, and artificial intelligence, we can expect these three graphs to diverge even more in the coming years.
- Log in to post comments
