Bruce Kasman is joined by Natasha Kaneva, Joe Lupton, and Greg Fuzesi to assess the macroeconomic consequences of the recent surge in natural gas prices. Prices have soared to historic highs in response to a perfect storm of high demand and impediments to supply. With supplies already low and production struggling to keep pace with rapidly rising heating demands, the risks point to extremely tight markets and high prices for the months ahead. Natural gas is largely a regional affair. While the US is generally well supplied and Asia is first in line for LNG, Europe is the residual claimant and has seen the most stunning spikes in gas prices this year. Governments will subsidize consumers, but the risks to business margins and even factory operations in the face of energy constraints poses yet another threat to the recovery.

Speakers:

Bruce Kasman

Natesha Kaneva

Joseph Lupton

Greg Fuzesi

This podcast was recorded on October 6, 2021.

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