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Natural Gas Prices Now at 2008 Levels. Abusive EU and USA Political Classes Whine to the World.


Natural Gas Situation

The folks at oilprice.com report to their readers that natural gas prices have hit 2008 levels (see: U.S. Natural Gas Prices Hit $9 For The First Time Since 2008). Natural gas forward contract first hit the $9 price range way back in 2000, at near peak GDP from the so-called Dot Com bubble , or Greenspan's 1994 to 1999 Great Inflation.




One should be little surprised that natural gas prices have reached 2008 levels, right when the US economy had past a True Dollar GDP peak.  For fourteen years, prices have been incredibly low owing to the Super Depression. 


UNG ETF


The UNG ETF is up 76% over six months as well as being up 141% year-to-date. Likely, what is driving this price is the foolish scheme of diverting USA based natural gas from the US to the EU, Japan and South Korea through the energy-intensive conversion to liquified natural gas (LNG).



Oil Situation

Next up, the rather abusive EU and USA political classes are begging oil nations to cut their income, so says Hellenic Shipping (EU, United States pushing for global fuel production increase – Scholz). Yet, why should oil producing countries meet such demands?

There is much oil in the USA as there is natural gas. The political class in the USA has hooped themselves with a phony man-made global warming story. 

So if they greenlight production and refining in the USA, both of which no smart oil firm exec will do unless there is a sustained return on capital for years, years of their global warming story falls apart. 

Yet, since USA political class has made out oil firms to be the bogeymen, the scourge of mankind, smart execs likely will ignore pleas from the USA political class.

USO ETF

The USO ETF is up 65% over the last six months and 50% year-to-date. As long as world demand grows and as long as supply relationships remain turbulent, likely, oil has further to run.







To comment about this story or work of the True Dollar Journal, you can @ me through the Fediverse. You can find me @johngritt@freespeechextremist.com

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