"Natural Gas Prices Are Going Crazy"... US Record Cold Wave Causes Price Surge

Record Cold Wave Causes Power Outages in 5 Million US Households
Natural Gas Prices Soar Over 100 Times from $3 to $500 Due to Heating Demand... Brent Crude Surpasses $64

[Image source= AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Due to a record-breaking cold wave that struck Texas, natural gas in the United States is being traded at prices more than 100 times the usual rate.

On the 15th (local time), Bloomberg News reported, citing local brokers, that the price of natural gas in the U.S. rose to $500 per 1 million BTU. The news agency stated that natural gas prices are usually traded below $3 per 1 million BTU.

The reason for the surge in natural gas prices is the unusual cold wave that hit the central U.S. The cold wave caused large-scale power outages, and with heating demand skyrocketing, natural gas prices have soared.

Bloomberg reported that at least 5 million homes and businesses across the U.S. experienced power outages.

In Texas alone, more than 4.3 million locations faced power outages, with over 400,000 in Kansas, Missouri, Arkansas, Louisiana, Ohio, Virginia, and more than 300,000 in Oregon. Even the outskirts of New York State experienced outages, and 24,000 households in Sussex County, New Jersey, were also without power.

The impact extended to Mexico, where over 4.7 million homes and businesses suffered power outages. However, about 65% of electricity supply has been restored in Mexico.

On the same day, temperatures dropped to minus 17 degrees Celsius in Dallas, setting numerous temperature-related records across various regions. Power suppliers stated that with the cold wave expected to continue until the 17th, it is uncertain when the outages will end.

Cody Moore, head of gas and power trading at Mercuria Energy America, described the situation as "shocking," saying, "Natural gas prices are going crazy."

West Texas Intermediate (WTI) crude oil prices also surpassed $60 per barrel for the first time in 13 months and continued to rise.

At the London ICE Futures Exchange, Brent crude futures prices broke through $64 per barrel in after-hours trading on the same day.

Texas produces about half of the oil consumed in the United States. Analysts suggest that hedge funds have engaged in large-scale crude oil futures purchases following the record cold wave in Texas.

This content was produced with the assistance of AI translation services.