The October natural gas contract tried to break out higher this morning only to reverse hard and settle flat on the day.
Yet again the October led the way higher this morning as later contracts lagged, and we continue to see the October/November X/V contract spread skyrocket.
Prices got up to $2.869 before reversing, justifying our neutral sentiment on the day too.
Meanwhile, traders continue to await the load-killing impacts of Hurricane Florence in the Southeast. The 2 PM Eastern update from the National Hurricane Center shows the storm as likely to stall right off the North Carolina coastline before tracking southwest and eventually moving inland.
Accordingly, a very expansive area is set to see tropical storm force winds, the likes of which could down trees and power lines, especially when accompanied by very heavy rain.
The slow-moving nature of the storm means that 20+ inches of rain across parts of North Carolina are possible. This could create significant flooding and further exacerbate impacts across the region.
The exact extent of demand destruction across the region is not yet clear. We expect some nuclear plants in the path of the storm to shut down, though that is not yet the case.
