October contract natural gas prices are now off 1.8% on the day as the market expects significant demand destruction over the weekend from Hurricane Irma. We are now more than 10 cents off the highs from yesterday, too, as prices started the day slightly higher yesterday before reversing lower.
While they were sitting near their highs early yesterday morning, we sent our Daily Note out to members of our Trader subscription warning that weakness in prices was likely, as the natural gas strip appeared a bit less supportive and the market appeared to be struggling to price in the impact of Hurricane Irma.
After prices declined into the EIA print and remained lower through the day, we sent out our Afternoon Premium Update warning that we saw Irma-driven downside towards $2.88-$2.92. Prices are now sitting right by this support range.
Since then, the impacts of Irma have only become more clear. The National Hurricane Center’s track has shifted slightly to the west in recent updates.
Power outages are expected to be rather widespread across Florida and should extend further into the Southeast as well.
Earlier this morning our Chief Weather and Energy Analyst Jacob Meisel was on Bloomberg News discussing how even though the storm was downgraded to a Category 4 this morning the impacts will still be quite significant and those in its path should not at all let their guard down. We continue to urge all that could be impacted by this storm to continue listening closely to state and local officials. Meanwhile, you can view the full Bloomberg News segment here.
