There’s Always A Commodity Somewhere Hitting Fresh Record Highs. Which One Will Be Next?

Natural Gas Prices Soaring: A Winter of Uncertainty in the Energy Sector

It’s impossible to talk about the energy sector without mentioning Natural Gas, which right now is on an absolute tear and breaking new records, almost daily!

European Natural Gas prices have been racking up double digit gains on consecutive weekly basis since mid-August.

On Friday, European Natural Gas prices surged over 10% in a single day. That’s the European benchmark’s second biggest daily percentage gain since Russia’s invasion of Ukraine.

Prices spiked after workers at two of Chevron’s biggest Liquefied Natural Gas plants – resumed strike action – threatening to disrupt global supplies just as the Northern Hemisphere approaches its winter heating season.

According to economists, if the strikes stop production at Chevron’s two important facilities for roughly a month, around 10% of global LNG supply could be lost. Put another way, that’s massive deal because the loss of the supply will cause a domino effect.

In fact, you only have to take a look at U.S Natural Gas prices, which are on track to close the session at a fresh 2023 record high – up over 7%. That’s its biggest one-day percentage gain, so far this year – and we haven’t even entered the winter months yet.

Rising Energy Prices Fuel Commodities Surge, with Uranium at 12-Year Highs

The unstoppable rally in the global energies has also pulled many other Commodities higher including Uranium – which is currently trading at the highest level since 2011.

And the rally might not stop there!

The higher energy prices go, the more expensive it becomes for companies to mine, produce, and transport essential Commodities – opening the door to a major squeeze in prices.

Since the beginning of this year, a long list of Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have described commodities as their “preferred asset class over the next decade”. In recent days, that chorus has once again become louder with Wall Street’s biggest institutions signalling pullbacks should be viewed as buying opportunities because prices rarely stay low for long.

Commodity Price Forecast

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