Natural gas prices have been on a rollercoaster ride in recent days because of a deep freeze throughout parts of the U.S., including Texas. Bloomberg reports that one measure of natural gas volatility is at its highest since 1996. Tensions between Ukraine and Russia could further shock gas prices.
All of this is unwelcome news for property owners, as commercial buildings heavily rely on natural gas for space heating. A winter storm recently blanketed much of the central U.S. and reported blackouts are expanding in Texas, where some fear gas wells will freeze and power plants will go offline.
A U.S. government tally of gas inventories shows the biggest withdrawal since the Texas freeze-out in February 2021, as stored supplies remain 15 percent below the level from last year. Meanwhile, the Biden administration has discussed stepping up production of liquefied natural gas to several companies and countries in Europe in the event of a Russian invasion of Ukraine, CNN reports.
How’s that for foreshadowing. Another compelling reason to use energy resources smarter!