October natural gas futures (NG1: COM) Today’s trade fell by 6% before settling down -1.1% At $ 2.63 / MMBtu, coolers weighed more than the weather had expected throughout the US and reduced demand for gas-fired cooling.
Weather forecasts indicated that temperatures would drop in the Northeast and Midwest over the next few weeks, with analysts saying the rapid rise in fuel began two months ago, after gas futures at the lowest price in 25 years Had started
Hurricane Laura also dampened sentiment, as the storm closed export facilities for liquefied natural gas, which operate along the Gulf Coast, hurting export demand.
Natural gas prices are also affected by the uncertainty surrounding the global economic recovery, as analysts say a decline in US demand could lead most Americans to work from home and shut down businesses.
Sempra Energy’s initial assessment of Cameron LNG after the storm indicated minimal flooding and no catastrophic wind damage, and Cheney Energy said its Sabine Pass liquefaction facility and pipeline assets valuation showed no significant damage.
ETF: UNG, UGAZF, DGAZ, BOIL, FCG, COLD, UNL, GAZ, GAZB