Is the Natural Gas Price Spike Sustainable?

Natural gas prices have risen to $4 per million cubic feet after being at or near $3/Mcf for the past five years, leading some to believe there is a recovery in prices. With a smaller inventory in natural gas, the spike in prices can be traced mostly to the increase in LNG (liquefied natural gas) exports. However, economists warn this is a short-term trend, as natural gas demand is affected by winter weather. American LNG demand remains impacted by the fact U.S. gas prices are rising and world prices are relatively lower. With these uncertainties, it is hard to pinpoint how this trend in natural gas prices will play out. (Forbes, 11.14.18)