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Why Is Natural Gas So Expensive Now?

Why Is Natural Gas So Expensive Now?

Newsy
Thursday, November 3, 2022 10:41 PM GMT

Supply for natural gas has increased, but so has demand. So why is natural gas becoming so expensive now?

In the U.S., utility gas prices in September were 70% higher than in recent years. Europeans, who already pay much higher for natural gas, saw bills rise sharply by 50% — for example, in Estonia. But to understand energy prices, you have to look at supply and demand.

Pierre-Olivier Gourinchas is the chief economist and director of the research department at the International Monetary Fund. 

"Just everywhere, rapidly rising prices, especially for food and energy, are causing serious hardships for vulnerable households," said Gourinchas. 

Read full story on Newsy
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