Shale drillers in the United States are reportedly struggling to fulfill the high demand for gas from domestic generators. Moreover, consumers in Europe and Asia are seeking alternative supplies following Russias invasion of Ukraine.
According to the U.S. Energy Information Administration, working inventories in underground storage reached 2,771 billion cubic feet, the second-lowest level this year since 2010. Since late January 2022, storage has consistently lagged the pre-pandemic five-year norm, and despite prices that are far higher than long-term averages, it shows no signs of narrowing.
Additionally, Inventories are now 398 bi