10 January 2023 | Macroeconomics

Gas in the U.S. grew by 5% after the 50% tumble over three weeks

On Monday, the growth of gas prices in the U.S. was more than 5%. It was an attempt to compensate for the 50% three-week loss.

here was the final amount in the February gas contract defined during the trading. It was $3.91 per metric million British thermal units (mmBtu) with 20 cents (5.4%) increase. Before this, the gas prices reached the peak of $4.123 per mmBtu. 

The 50% price drop was caused by the abnormally warm weather at the end of December and early January. As a result, European and American markets had sufficient gas reserves.

Weather data shows that the fall in gas prices will continue. This happens amid weather reports indicating possible warming in the U.S. until at least January 12th.

The U.S. Energy Information Administration provided the data on reserves in gas storage facilities.

Such a situation is usually considered a bullish factor for prices. Recent market-value appraisals might be inaccurate due to abnormal warming at the start of winter 2022/23.

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