The Future of Natural Gas Pricing Could Be a Trans-Atlantic Tug of War

JUST when natural gas prices seemed likely to hit the moon this winter, much of the United States had the warmest January in history. With gas inventories high, prices plunged. Natural gas is now unusually cheap relative to oil.

United States natural gas is also cheap relative to gas in Britain, and traders think that pattern will persist into next winter

Wild swings in natural gas prices have long been a part of the commodities market. Unlike oil, gas was impossible to ship outside of pipelines. So a surplus of gas in the United States would drive prices down, perhaps at the same time they were soaring in Britain because of a cold spell.

But that is starting to change, as the volume of liquefied natural gas transported by ship grows. Those ships can turn around if one market will pay much more than another for gas.

NY Times