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Why natural gas prices have surged to some of their highest levels in years

Why natural gas prices have surged to some of their highest levels in years

CBC
Friday, September 17, 2021 4:16 AM GMT

Natural gas prices have climbed to some of their highest levels in years, with the increases expected to ripple into people's gas bills as winter fast approaches.

A marriage of factors in North America and Europe — from summer storms to an overseas supply crunch — have contributed to sharp rise in the price of the fossil fuel.

Martin King, senior analyst at RBN Energy, said the Alberta spot price for natural gas was around $4.80 a gigajoule on Thursday morning. With the exception of a February price spike amid a nasty North American cold snap, it's some of the highest prices he's seen in years.

"It's pretty astounding," King said. 

"We're seeing seven-year highs for natural gas both in the U.S. and Canada and, on the international front, we're seeing pretty much close to all-time highs in many markets worldwide."

While those prices will help natural gas producers, it'll have consumers facing higher gas bills at a time when they're already paying more for housing, transportation and food. 

"We'll see how the spring and summer next year shape up," King said. "But in the very short term, going into the winter, we're all going to be facing higher natural gas bills."

Read full story on CBC
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