You smell that? It’s natural gas – and its prices are surging.
Natural gas prices jumped to their highest level in two years yesterday. Why?
- Short answer: Colder temps and hurricanes.
Long answer: Demand for heat and power skyrockets in the colder months. More people heating their homes = higher demand for natural gas. Higher demand = higher prices.
Still with us?
Weather or not, here we come. Weather also can play a role in the price of natural gas and energy.
Investors are scoping out the damage caused by Hurricane Delta – a Cat 2 storm that hit Louisiana over the weekend.
- Extreme weather like hurricanes or tornadoes force energy companies to shut down natural gas production so explosions don’t occur.
Prices have rallied over 15% so far this month and are up around 60% in the past three months.
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