It may not look like much, but a broad area of low pressure tracking over southern Florida Friday may have the potential to strengthen and move toward natural gas infrastructure along the Gulf Coast early next week, according to one forecaster.
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September natural gas is set to open 2 cents lower Friday morning at $3.87 as weather forecasts moderate and traders expect production gains to ultimately dominate short-term weather developments. Overnight oil markets fell.
Weather Services International (WSI) is sticking to its forecast of a mild 2014 Atlantic hurricane season, saying Tuesday that an El Nino event and cooler waters in the Atlantic Ocean will suppress tropical storm activity.
June natural gas is expected to open a penny higher Wednesday morning at $4.56 as traders reassess recent weather forecasts and balance those against expectations of near-term storage injections that are likely to soften the market. Overnight oil markets rose.
The 2014 Atlantic hurricane season is expected to produce fewer than the average number of tropical storms and hurricanes, according to forecasters at AccuWeather.com, who said tropical development could be altered by the onset of an El Nino even in late summer of fall.
An El Nino event — the warming of water temperatures in the central and equatorial Pacific Ocean — is likely to limit the number of hurricanes that form in the Atlantic Basin this year, according to forecasters at Colorado State University (CSU), more good news for the U.S. natural gas industry, which is increasingly insulated from the impact of tropical storms.
Offshore operators on Thursday were bringing nonessential personnel to shore and shuttering some production facilities after National Hurricane Center (NHC) forecasters said Tropical Storm Karen could reach hurricane strength by Friday.
Natural gas pipelines on Destin Pipeline Co.’s system operated by BP Pipelines in the central and eastern Gulf of Mexico (GOM) were in phase 2 of their severe weather contingency plan with all nonessential personnel preparing for evacuation in preparation for what could be the first real tropical storm threat to U.S. energy interests this year, Destin said Wednesday.
A relatively quiet 2013 Atlantic hurricane season and no sign of tropical activity on the horizon has prompted Weather Services International (WSI) to make a significant reduction to its tropical forecast. WSI forecasters said they now expect 15 named storms to form in the Atlantic Basin, including five hurricanes, one of them major (Category 3 or higher).
The 2013 Atlantic Hurricane season is deep into its second half and there has yet to be any significant threat to natural gas and oil interests in the Gulf of Mexico (GOM). But with the flood of onshore natural gas that has come out of U.S. shale plays in recent years, would a hurricane in the GOM have the same impact on prices and supply as storms have in the past?