Energy & Science
U.S. Natural Gas to Be World’s Priciest Amid Virus Upheaval
- Henry Hub gains on expectations that gas output will decline
- Prices in Asia and Europe hit new lows as supply tops demand
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For the first time in more than a decade, U.S. natural gas is set to be the world’s most expensive as Covid-19 lockdowns wallop demand in other regions.
Gas futures in the U.S. have rallied about 10% this month as traders bet that a historic crash in oil prices will drive American shale companies to halt more drilling and curb output of gas, which is extracted as a byproduct. In Europe and Asia, meanwhile, prices are sliding to fresh lows due to a supply glut and languishing consumption amid the pandemic.