What about natural gas prices?
Limitations on the way that natural gas is distributed—along with high demand and consumption—continue to create supply challenges and price concerns.
Storage inventories of natural gas have sometimes been strained, and that leads to price volatility and price increases.
Other factors that may affect natural gas prices
- Power plants are converting from coal to natural gas faster than expected, causing a significant rise in demand.
- U.S. suppliers have been rushing to export domestic gas to markets in Europe and Asia, where they can charge more money. A decrease in domestic supply may result in higher prices.
- According to the Energy Information Administration, natural gas exports reached record levels in 2018, driven primarily by exports of liquefied natural gas (LNG) and secondarily by pipeline exports to Mexico. LNG export capacity is expected to continue growing in 2019 as new LNG export facilities enter service.