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Gas prices surge on tariff fears, cold snap
US natural gas futures experienced a significant rebound on Monday, surging 8% to reach $3.287/MMBtu. This surge followed a sharp 11.8% decline the previous week. The price increase is likely due to a recent announcement of tariffs on Canadian and Mexican oil, raising concerns about potential supply disruptions. The US relies heavily on oil imports from these countries, with approximately 4 million barrels per day from Canada and over 450,000 barrels per day from Mexico. These tariffs, set at 25% for Mexican oil and 10% for Canadian energy products, could significantly impact the energy market.
Gas supply concerns rise amid tariffs, cold snap
Experts predict a potential drop in Canadian natural gas exports to the US due to these tariffs, which could further exacerbate supply concerns. Additionally, a recent report revealed a substantial gas withdrawal of 321 billion cubic feet (bcf) due to extreme cold weather, significantly exceeding both last year's and the five-year average.
