US natural gas prices have behaved very differently from European and other gas prices during 2011. US prices [Henry Hub spot prices, Louisiana, fell significantly over this period, from $162 to $114 / 1000m3, whilst European prices [Russian gas, delivered to German border] rose markedly, from $331 to $436 / 1000 m3. For actual prices, see http://www.steelonthenet.com/commodity_prices.html for prices in Europe and http://www.steelonthenet.com/files/natural_gas_prices_USA.html for prices in the United States.
The difference in price behaviour seems to be explained by the shale drilling boom in the United States - which may soon swell the nation’s underground storage network - and which is resulting in excess gas supply.
Nonetheless, with a difference in prices that is now close to four-fold, it seems clear that regional supply and demand has a major influence on the pricing of this particular commodity.
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