- The market has bid up U.S. gas prices along with the broader energy rally on the back of the Russian invasion of Ukraine.
- However, spiking European gas prices should have very little impact on U.S. gas supply/demand, given that LNG exports are already maxed out.
- Meanwhile, production from the Permian and Haynesville shales will likely overwhelm the modest demand growth from new LNG export terminals in 2022.
- The upcoming shoulder season should reveal an oversupplied U.S. gas market, pushing prices back down to $3 this summer.
For further details see:
U.S. Natural Gas Is Headed To $3