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This is a better situation than the reverse. It’s fortunate the winter has been mild so far. Will be interesting if the LNG industry can keep pace and replace Russia for good.
The market for delivery briefly went price negative. This is dominated by what is in the pipeline right now and what volume of gas is being pulled from the pipeline right now.
The futures market is still positive. This market is served by LNG and gas that is still in the ground. The price here is dominated by risks.
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The above model is oversimplified and wrong. If you want to know how things work, it may take some dedicated study beyond internet comments.
> Natural gas prices just dipped below zero. > Those ships [are] carrying about $2 billion worth of LNG. Really?
This is a better situation than the reverse. It’s fortunate the winter has been mild so far. Will be interesting if the LNG industry can keep pace and replace Russia for good.
Not to nitpick and assuming you're living in the northern hemisphere, winter has not officially arrived; we're still in the fall/autumn season.
> Natural gas prices just dipped below zero. > Those ships [are] carrying about $2 billion worth of LNG. Really?
I had to pay 800 euros last month for home energy on my variable contract in Amsterdam. Insane.
You have different markets essentially - there is a market for delivery, and a futures market. The market for delivery briefly went price negative. This is dominated by what is in the pipeline right now and what volume of gas is being pulled from the pipeline right now. The futures market is still positive. This market is served by LNG and gas that is still in the ground. The price here is dominated by risks. --- The…
Can you share anything that would help us commoners reading internet comments understand why the analysis is wrong?