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Nat gas settles higher as Harvey disrupts south Texas production

Published 08/28/2017, 05:46 PM
Updated 08/28/2017, 05:46 PM
© Reuters.  Nat gas settles higher as Harvey disrupts south Texas production
  • September natural gas futures settled 1.1% higher at $2.925/MMBtu, as damage from Harvey is seen disrupting gas production in the Eagle Ford shale and the Gulf of Mexico.
  • The reduced output has pushed domestic output back below 71B cf/day, a bullish sign for the market, according to Robbie Fraser, commodity analyst at Schneider Electric (PA:SCHN), adding that the storm is capable of further pipeline disruptions that could trigger short-term price swings.
  • But the storm also has bearish implications for the market if demand for natural gas is weighed further, and power outages and closing of businesses could offset supply risks.
  • ~26% of natural gas production in the Gulf of Mexico yesterday was offline due to Harvey - "more than anticipated, and surprising,” says analyst Phil Flynn of Price Futures Group; this afternoon, 18% of natural gas production in the region, or 583.4M cf/day, is shut in.
  • ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, GAZ, KOLD, UNL, GASX, DCNG, GAZB
  • Now read: Natural Gas Winter Outlook: Preliminary Results

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