Natural Gas News: Hurricane Francine and EIA Storage Report Create Market Turbulence
Natural Gas News: Analyzing Hurricane Francine's Market Impact
Natural gas futures are experiencing fluctuations amid the looming impact of Hurricane Francine and the anticipation of the U.S. Energy Information Administration (EIA)'s storage report. Currently trading at $2.299, up by 1.28%, traders are weighing the storm's potential to disrupt Gulf production against forecasts of a 46-50 billion cubic feet (Bcf) storage injection.
Hurricane Francine's Influence
As Hurricane Francine approaches Louisiana, concerns over disruptions to production in the Gulf of Mexico grow. Yet, cooler temperatures and the risk of outages may sway demand, complicating the storm's potential bullish effect.
EIA Storage Report Expectations
- The EIA's report is expected to indicate an injection of 46-50 Bcf, a decrease from the five-year average of 67 Bcf.
- This projection may reduce storage surpluses to around 300 Bcf, providing some price support.
Volatility in Supply and Demand
Natural gas production has dipped below 100 Bcf per day, lending some support to the market. However, with a substantial supply overhang and unpredictable weather, traders remain cautious.
Market Outlook: Cautiously Optimistic
- Short-term outlook is cautiously bullish with pivot points at $2.252 and $2.158.
- The 50-day moving average of $2.31 is pivotal; significant supply disruptions could push prices above this threshold, but high storage levels and possible demand destruction might limit gains.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.