Another slump in energy prices as warm weather in the northern hemisphere puts a dampener on demand.
From the FT:
US natural gas prices sold off sharply again on Thursday, falling to their lowest level in more than a year after government data showed higher than expected inventories and unseasonably warm weather continues to dampen demand.
Henry Hub, the main US gas price benchmark, dropped below $3.70 per mn British thermal units in midday trading, extending a days-long slide in the market to open the new year and putting it on track for its lowest closing price since September 2021.
Prices are down 45 per cent from recent highs in mid-December, temporarily easing fears of soaring winter heating and electricity costs.
US benchmark prices are now down almost 60% from its March 2022 peak:
This might be a problem for profligate Australian gas exporters, whose 2022 profits were just made public – nearing $100 billion!
From SMH:
Australian gas exporters’ earnings soared to a record $92.8 billion in 2022 on the back of intense international demand, with a global energy crunch caused by international embargoes on Russian energy exports driving prices and pushing LNG revenue up 86 per cent in the past twelve months.
The huge profits of the past 12 months, recorded in data compiled by Adelaide-based consultancy EnergyQuest, have been made public in the middle of tense negotiations between the industry and the Albanese government over plans to turn the temporary price caps imposed on gas producers permanent.
Why reservation never seems to be on the table for gas exports boggles the mind. The world pays cheaper energy prices at Australia’s loss.