BP Market Update
It is estimated that the wholesale price of natural gas at “benchmark” Henry Hub will average $3.92 per million British thermal units (MMBtu) in 2022, an eight-year high, and will average $3.60/MMBtu throughout 2023. These spiking prices will put more pressure on drilling and production of Natural Gas.
Events in Ukraine have caused oil prices to skyrocket, The Russian Invasion caused an almost instantaneous global supply shock. Russia is one of the biggest oil producers in the world. As its attacks in Ukraine intensified, traders, shippers and financiers shunned Russian oil, removing much of it from the daily global supply. Roughly 8% of U.S. imports of crude oil and refined products came from Russia last year. For Americans already navigating inflation, the current crisis is likely going to push prices up before they come down.