Ahead of Hurricane Harvey, the CME/NYMEX Henry Hub September natural gas futures contract this past Friday settled at $2.892/MMBtu, down 5.7 cents on the day, as the market awaited the impact of the storm. Since then, preliminary gas pipeline flow data show major shifts in supply and demand (more on that in the blog). As of Sunday evening, the September contract was complacent, up little more than a penny in after-hours trading. We’ll know more about the effects of Harvey and the market’s reaction today and in the coming days and weeks.
The data is likely to be revised significantly today and in the coming days, but preliminary data from our friends at PointLogic Energy showed gas production volumes in Texas as of Sunday evening were down about 0.8 Bcf/d (5%) to 15.7 Bcf/d, from the 30-day average of about 16.6 Bcf/d, with the declines almost entirely from the South Texas region. At least another 0.9 Bcf/d was shut-in from offshore platforms in the Gulf of Mexico. Overall U.S. production as of Sunday was down 1.9 Bcf/d (~3%) from the 30-day average, again based on very preliminary numbers.
https://rbnenergy.com/summertime-blues- ... et-balance
Harvey's impact on the natural gas market
Harvey's impact on the natural gas market
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group