Global Energy Prices Set For Their Biggest Gain On Record – What’s Next?

Natural Gas Prices Explode to the Upside

You cannot talk about the Commodity Supercycle without mentioning Natural Gas – And that’s because Natural Gas is one of the hottest Commodities in the world right now!

Natural Gas snatched the headlines this week with a blistering gain that sent prices on both sides of the Atlantic blasting through all-time record highs.

U.S Natural Gas prices skyrocketed above $9.65 (BTU) to levels not seen in over 14 years – notching up a staggering gain of over 525% – from this time two years ago when COVID-19 shutdown, the U.S economy.

Elsewhere in the Energies complex, the real star performer this week was European Natural Gas.

European Natural Gas prices have been on an unstoppable run – heading for the longest stretch of weekly gains since mid-December.
This week, the European benchmark soared to a record high of €251 per megawatt hour – racking up a phenomenal gain of more than 700%, from this time last year.

Put another way, that’s the equivalent of both benchmark futures contracts now trading at more than $400 a barrel of Oil.

The summer spike in Natural Gas prices is being driven in part by high demand as scorching heatwave temperatures through much of the world force businesses and households to crank up the air conditioning. That in turn has chipped away at relatively low inventory levels.

Prices are currently 11 times higher than where they usually are for the time of the year – and we haven’t even entered the winter months yet, when prices will enviably surge higher again.

Is the rally over? Not by a long shot!

The Commodities Supercycle Continues

In recent weeks, a long list of leading Wall Street banks from Goldman Sachs, Bank of America to Citigroup have increased their bullish calls – predicted Natural Gas prices will more than double, if not triple from current levels over the next year.

Interestingly, last quarter Warren Buffett, who is arguably the world’s the smartest investor – revealed that his biggest investment ever is currently riding on the Commodities Supercycle.

In the words of Buffett, “the Commodity and Energy markets right now, represent one of the greatest generational opportunities of our lifetime, not to be missed.”

And he definitely wasn’t wrong!

Commodity Price Forecast Video for August 19, 2022

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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