UK prices are quoted in therms, us prices are quoted in MMBTU. 1 MMBTU = 10 therms.
1 MMBTU is trading for approx $2.5, 1 UK therm is trading at 143p (circa $1.70), what is driving this nearly 7x difference between UK and US prices?
In: 5
Future pricing is based on market speculation of what the cost might be down the road and locking in pricing now. Futures pricing is based on wars, seasonal/climate projections, market trends, knowledge of what refining plants will go offline for service and upgrades in the next quarter, and number of…well guesses really (usually best guesses by a number of different analysists).
A lot of people are speculating that natural gas prices will rise dramatically in the UK and Western Europe over the next few months to a year, so people are trying to buy stock based on what someone guesses the future price might be.
In the US there is a projection that renewable resources will drive down prices of coal and natural gas in the US over the next 2 years, so the futures market is dropping in the US.
[https://www.eia.gov/todayinenergy/detail.php?id=55239](https://www.eia.gov/todayinenergy/detail.php?id=55239)
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