Eugene (Evgueni) Maftsir is a New Jersey professional who delivers financial solutions based on advanced models. One area of transactional focus for Eugene Maftsir is global commodities markets, and he maintains a close watch on trends.
In early October 2021, natural gas prices spiked to a level last seen seven years ago. In North America this reflected a sluggish production recovery in the Gulf of Mexico following a major hurricane, coupled with growth in US exports and already tight supplies.
One reason for elevated demand is global efforts to cap carbon emissions, which have led to an increased appetite for renewable sources and low emissions natural gas. Demand for liquefied natural gas (LNG) has particularly surged in Asia, Europe, and Latin America, with futures prices more than double where they were the year before.
With natural gas demand also elevated in the months approaching winter, questions remain as to whether the LNG prices will remain high moving forward, and whether this will cause a shift back to more polluting energy sources such as fuel-oil and coal. Alternatively, countries such as Russia could ramp up LNG production and help fulfill elevated demand.
