Gas prices continue to trade higher. It is now trading at $5.3 per mmbtu. It is a new seven-and-a-half year high. The prices have gained 30 percent in just about one month itself and this is since Hurricane Ida made a landfall.
Nearly 51 percent of the natural gas output in the Gulf of Mexico is still offline and that seems to be supporting the natural gas prices further.
The price movement – 8 percent of gains in natural gas in the last one week itself, 30 percent upmove in the last one month and it is up by nearly 109 percent for the current year.
Global supplies have been on the tighter side. The US and the Europe premiums also are trading at near record highs. Gas inventories in US and Europe are below five-year average as well and the International Energy Agency (IEA) report that came in yesterday, which said that the US inventories itself are 7.5 percent lower than the five-year average.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.