Global energy markets were jolted this week after the effective closure of the Strait of Hormuz sent crude oil and international LNG prices sharply higher. U.S. natural gas has moved up as well, but far less dramatically. Domestic fundamentals remain relatively loose, with mild weather, strong production, and storage near 1.9 Tcf, while LNG exports are already operating near capacity. As a result, the global rally has offered some support—particularly further out on the curve—but the U.S. market continues to reflect stable domestic supply-demand conditions.
