• Natural Gas Price Volatility Continues

Natural Gas Price Volatility Continues

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.
  • Weather
    • 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.

By |October 8th, 2020|News|0 Comments