Hamburg, Germany- In the European market, the price of Natural Gas surged due to fluctuating demand from downstream sectors. On 11th August, the inflow of Natural Gas through a pipeline running through Portugal, Spain and France to Central Europe was gridlocked, which could have provided relaxation in the supply. Scorching summer dries up the rivers in the European region, boosting the energy demand in the market that is already reeling from a supply crunch.

Energy companies and traders are gaining huge profits selling US Natural Gas to Europe at skyrocketing prices. According to our trusted source in Hamburg, buyers who locked up deals to purchase US Natural Gas before the European prices surge are making huge profits.

Despite such issues, the European Nation has pushed ahead with the utilization of its inventories, which have stayed near average levels due to higher imports of liquefied natural gas. German storage hit a refill target two weeks ahead of schedule, helping keep prices in check in recent days. But the situation remains in the balance, and any further disruption in supply could still result in shortages.

In the US market, Natural Gas prices are far lower due to sufficient supply in the domestic region and relatively lower exports to the global market. The US Henry Hub futures traded around USD 8.70 PER MMBtu on 12th August. The gapping price difference has pushed major companies to deal with the European region, accelerating profit and margins.

According to ChemAnalyst, the price of Natural Gas will surge, and rising temperature in Europe and further supply crunch from Russia will worsen the situation. The downstream derivative market, namely, Methanol and Acetic Acid, will gain momentum with healthy demand from end users. Exports from the United States will help the producers to maintain their profits. MTBE and Formaldehyde prices will also soar with disruption in supply-demand fundamentals.