Long-term stagnation turns into sharp decline.
Storage above target, floating LNG import terminals going into service.
Not all commodities are plunging: Game of Inflation Whac A Mole.
Just when we thought the plunge in natural gas prices might take pressure off inflation, it starts all over again.
Some demand destruction is behavioral and may bounce back; some is structural, growing, and long term: The decline of an industry.
Wait… gasoline exports are rising.
US natural gas prices tripled from the 10-year average, now linked to global prices, with 7 LNG export terminals now operating and 15 more approved.
San Francisco regular hit $6.34 on average; at Wolf’s gas station from heck, it hit $6.79, premium at $7.00.
I see gasoline prices rising further despite this modest short-term & long-term demand destruction.
The boom in natural gas exports creates massive demand on US production and connects US prices to the rest of the world.