7percent
Nov 8, 1:17 PM
$VLO $XOM $CVX $BP There is enough oil in the U.S. but not in the rest of the world, which raises the U.S. price. There is also enough natural gas in the U.S. On Friday, natural gas closed at just
$2.89/mmBTU, while the European price keeps expanding the gap to the U.S. price. European natural gas closed on Friday at 103.94 EUR/Mwh, which comes out to
$34.14/mmBTU in dollars, making it close to 12 times more expensive to Europeans than to Americans.
In Europe and most places in Asia, there is not enough oil produced domestically, and there sure isn’t enough natural gas, as the war in Ukraine has resulted in disruption of pipeline supplies. The Europeans thought they could make it up with more expensive LNG, and the evidence so far is that they cannot do that, as there is damage to Qatari LNG infrastructure, raising spot LNG prices globally. Some industries cannot operate profitably at current natural gas prices. Add diesel at all-time highs, and we have a problem.
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