The lingering supply disruptions for natural gas have worsened with bans on Russian imports because Russia is one of the major global suppliers of oil and natural gas. This has driven natural gas prices higher. According to the EIA, U.S. dry natural gas production is estimated to reach 97.5 Bcf/d by December 2022, a new record high. However, experts expect natural gas prices to soar on surging demand.
Natural gas is a necessity for power generation, and its demand is slated to surge in the coming months. The U.S. consumption of natural gas is expected to average 84.6 Bcf/d in 2022, up 2% year-over-year. Investors’ interest in this space is evident in the United States Natural Gas Fund, LP’s (UNG) 15.4% returns over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 4.7% returns.
