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What makes gas different from wheat? US is a huge exporter of wheat, that doesn’t mean us farmers/traders don’t have their eye on what Ukrainian shortfalls impl
by balderdash 4y ago
What makes gas different from wheat? US is a huge exporter of wheat, that doesn’t mean us farmers/traders don’t have their eye on what Ukrainian shortfalls imply for global balances?
Same thing for gas, uk is competing with their neighbors for a resource that just got a whole lot more scarce (locally), causing prices to rise
- neural_thing 4y agoGas is, well, a gas. The only way to transport it in the absence of pipelines is liquifying it. LNG infrastructure is very hard to build, and right now there's no additional LNG capacity to ship gas to Europe. It takes a while to build. See https://doomberg.substack.com/p/have-fun-staying-cold https://doomberg.substack.com/p/have-fun-staying-cold From last November
- balderdash 4y agoObviously, and obviously transporting and storing nat gas drives pretty large basis spreads globally. You still haven’t addressed WHY the fundamental price setting mechanism of nat gas would be any different from any other commodity.