The market bounced right back up today.
The NYMEX October front month contract opened at $2.149 US/mm and rallied about 3% to $2.24. The winter strip was unchanged.
Temperatures in the US are expected to climb in the very near term, especially in the Central North and Northeast, so there will possibly be more cooling demand on the horizon, but only in the short term. The Halloween decorations have appeared in the dollar store so the trend in average temperatures is down.
Francine is projected to make landfall on the Louisiana coast Wednesday evening (tomorrow). Lots of rain will cool the area in the near term. The projected path is will not threaten any LNG facilities, but according to Reuters, a possibility that some along the Gulf Coast may halt operations as a precaution. Small chance, but that would cause prices at NYMEX to fall as the feed gas gets pushed back into the market.
Of importance, we can expect some rain here in Ontario from the remnants of Francine in a couple days though, so the heat may not last.
