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Monday, October 11, 2021

Chart of the week: the hot topic of gas price spikes - citywireselector.com

Source: Eikon

The rise and rise of gas prices have drawn attention over the past month, but how does it really compare to historical highs? Dr. Nisha Long takes a closer look.

Natural gas futures were trading around $5.16 per million British thermal units (Btu) at the end of September 2021. At 16:00 BST on 7th October 2021 this was at $5.61 per million Btu and continues its upward trajectory as gas supplies run low around Europe.

However, the peak came on 5 October when this hit $6.4 per million Btu, which was before Russia’s President Vladimir Putin said Gazprom, the Russian majority state-owned multinational energy corporation, would be sending more gas to Europe via Ukraine.

But over the past few decades we have seen much worse. The peak spot price was reached in October 2005, when the figure hit at $13.42 per million Btu and at price of $12.69 per million Btu in June 2008 just before the onset of the global financial crisis.

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Chart of the week: the hot topic of gas price spikes - citywireselector.com
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