After preparing the public for the shock of skyrocketing winter energy bills, the price of natural gas dropped more than 75% over the last six months.
Overall, 2022 saw great volatility in the price of gas for several reasons. Much of this was due to supply chain uncertainty due to the Russia-Ukraine war and export hindrances from the top producer, the United States.
The dire predictions were further mollified by a mild winter in Europe and the United States. This, combined with a reduction in electricity use by domestic households, resulted in the benchmark NYMEX, which started trading at $4.40 MMBtu, declining slightly down to $2 in February. The commodity is now trading at $2.50 MMBtu. The most active MCX futures corrected to Rs 212 MMBtu from their all-time high of Rs 801 hit in August last year.
As Russia turned off the gas supplies, a further reason for dwindling gas prices was the sudden glut of LNG supplies.
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