Natural gas prices fell last week. However, they have taken a sharp turn upward earlier this week.
On Monday, October 5, 2020, the November 2020 natural gas futures increased strongly ending the day at $2.615/MMBTU, which was a 7.3% increase. There were a few different reasons for this increase:
- President Trump’s health improvements over the weekend at Walter Reed Medical Center from covid-19.
- There was a possibility that another coronavirus stimulus package would balance covid-19’s impact on the economy.
- Warm weather in the south, including Texas, continues.
- Hurricane Delta has now entered into the Gulf of Mexico. A hurricane watch has been issued for parts of Texas and Louisiana. Due to the impending hurricane, 50% of the natural gas production platforms in the gulf have shut down.
- Concern regarding a cold winter.
- As LNG demand improves. there is concern that today’s natural gas storage injection will be below the expected injection range.
As of 9:10 a.m. this morning, Thursday, October 8, 2020, the November 2020 natural gas futures were trading at $2.530/MMBTU. This is down $0.076/MMBTU from yesterday’s settle.
Another sign that the volatility in the natural gas futures continues.