Natural gas futures surged on Monday as a new tropical storm threatened to further shake the Gulf of Mexico’s (GOM) production foundation, a development that could hamper supply/demand balances at a time when gas in storage for winter is already light.

NGI Storage Snapshot

The October Nymex contract cruised 29.3 cents higher day/day and settled at $5.231/MMBtu. November gained 30.0 cents to $5.273.

At A Glance:

  • Tropical Storm Nicholas arrives in GOM
  • Production in a ‘precarious’ state
  • Spot prices advance across the country

NGI’s Spot Gas National Avg. spiked 36.5 cents to $5.225. Hubs across the country posted double-digit gains.

Tropical Storm Nicholas formed Sunday and arrived in the GOM on Monday as production in the region was still reeling from the aftershocks of Hurricane Ida....