The ban on Russian energy imports had a negative impact on the US economy. Currently, the cost of gas in the US is at an all-time high. Moreover, gas prices as well as other energy prices are likely to soar even higher.
Natural gas prices have skyrocketed to the highest level since August 2008. According to trade data, stock quotes jumped to $9.399 per million British thermal units (MMBTU), i.e. $330 per 1,000 cubic meters. Energy expert at analytical agency Argus Media David Givens is sure that further price hike is possible. It is determined by three key factors: modest production output, high LNG export volumes, and low storage capacity, 17% below average for the last five years.
Rising exchange prices contribute to increased inflationary pressure: electricity could become more expensive. Earlier, cheaper coal was used for generating energy instead of gas. However, many coal-fired power plants are shut down due to environmental requirements. Moreover, hydroelectric power plants reduce the volumes of energy production due to the drought in the west of the country. US gas prices have surged by nearly 150% since the start of 2022. However, they are much lower than in the EU.
