October natural gas is set to open 3 cents higher Friday morning at $2.82 as traders assess the loss of demand from now-Tropical Storm Hermine and start calculating a new set of storage builds going forward after Thursday’s surprise Energy Information Administration inventory report. Overnight oil markets rebounded.
Articles from Hermine
September got off to a decidedly bearish start as a much larger-than-expected natural gas storage injection and the upcoming holiday weekend combined to pull natural gas forwards markets down by an average of more than 10 cents between Aug. 26 and Sept. 1, according to NGI’s Forward Look.
Offshore oil and gas operators in the Gulf of Mexico (GOM) were re-boarding platforms and rigs and restoring production Friday as the remnants of Hermine, weakened again to tropical storm strength, moved northeast across North Carolina and toward the Atlantic Ocean, the Bureau of Safety and Environmental Enforcement (BSEE) said.
Physical natural gas for the four-day Labor Day holiday weekend fell as temperature outlooks moderated and traders assessed the loss of energy demand from the storm-ravaged Southeast.
Tensions eased in the Gulf of Mexico (GOM) Thursday, with shut-in numbers declining and workers preparing to head back to platforms, as Hermine, upgraded to hurricane status, made its long-awaited move toward the Florida coast.