Natural Gas Prices Soar To 9-Year Highs As Cold Forecast Bites

Natural gas prices shot through the roof on Wednesday as weather forecasts called for an increasingly cold winter in what is looking like a tightly supplied market.

Natural gas spot prices had climbed by more than 10 percent shortly after 11:00am EST, to reach $4.512—a price that traders haven’t seen since Fall 2014.

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U.S. set to produce half of world’s oil, gas output by 2025, IEA report finds

ABU DHABI — Relentless American shale development is set to allow the U.S. to leapfrog the world’s other major oil and gas producers, with the potential for the country to account for roughly half of global crude and natural growth by 2025, the International Energy Agency said Tuesday.

In its annual World Energy Outlook report, the IEA said its main projection scenario through to 2040 foresees the U.S. accounting for nearly 75% and 40% of global oil and gas growth, respectively, over the next six years. Growth is expected to be driven primarily by shale fracking, which should lead U.S. shale oil supply to more than double, reaching 9.2 million barrels a day by the mid-2020s, the agency said.

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Banks Raise Oil Forecasts as Iran Sanctions Approach

LONDON—Banks last month raised their forecasts for oil prices, amid expectations of a further reduction in crude supply from Iran after U.S. sanctions on the OPEC member’s oil industry take effect next week.

Brent crude—the global oil benchmark—is now expected to average nearly $75 a barrel this year, according to a poll of 11 investment banks surveyed by The Wall Street Journal. West Texas Intermediate, the U.S. standard, is projected to average just above $68 a barrel in 2018. The estimates mark increases of roughly $2 and $1, respectively, on the forecasts from September’s survey.

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