After a morning rally that sent the prompt month November contract upwards to the 2.70 level, prices fell sharply and settled at the 2.52 US/MMBtu level on concerns that Hurricane Delta could disrupt more liquefied natural gas exports than Gulf of Mexico production.

The most recent hurricane trajectory from the NOAA has Delta heading directly for Louisiana, where a number of export facilities are located. With the damage to LNG facilities from recent hurricanes fresh in traders’ minds, it makes sense that traders are accounting for the potential downside risk to LNG being offline should the hurricane significantly disrupt LNG exports.

a

Scroll to Top