Core Viewpoint - The global gas markets are experiencing significant price surges, with US wholesale prices increasing by 75% and European gas prices rising by over 40% in a short period, raising concerns about potential gas shortages and price hikes for consumers [1][2]. Group 1: Price Trends - US wholesale gas prices have surged by 75% recently, while European gas prices have increased by more than 40% [1][2]. - TTF prices, the benchmark for Europe, peaked at €40 per megawatt hour (MWh), up from €27 on January 9 [6]. - In 2022, gas prices exceeded €300 per MWh, approximately ten times the historical average of €20–€30 per MWh [4]. Group 2: Causes of Price Surge - The recent price increases are attributed to a combination of factors, including extreme cold weather in the US and reduced gas storage levels in Europe [3]. - The US is experiencing a significant cold spell, which could lead to production outages in LNG, impacting European gas supplies [9]. - The UK now sources about 15% of its gas as LNG, with 80% of that coming from the US, indicating the potential impact of US weather on European gas prices [10]. Group 3: Market Dynamics - Despite the price surges, analysts believe that the current situation is not indicative of a gas shortage, but rather a global glut due to the rapid growth of liquefied natural gas (LNG) [6]. - The construction of new LNG export terminals in the US has bolstered dwindling UK and European gas supplies [10]. - There has been no long-term cut-off in supplies, suggesting that other factors may be contributing to the volatility in European wholesale gas prices [11].