- U.S. natural gas futures recovered the prior session's losses, with the November contract up 1.6% to $3.22/mmBtu and up 6.1% on the week.
- Hurricane Isaias approaches the U.S. Gulf coast and is expected to make landfall in Alabama Friday evening.
- About 1.3 Bcf/d of output was shut in at midday after producers evacuated offshore platforms, according to the Marine Minerals Administration.
- Gelber & Associates says the storm offsets the supply loss by cutting demand through outages and cooler, rainy weather, so the lost output is not an equivalent tightening of the national balance.
- Separately, Middle East LNG flows through the Strait of Hormuz remain more than 75% below pre-war levels, with European storage 73% full, supporting elevated gas prices globally.
Quotes
“The storm also threatens electricity demand through outages and cooler, rainy conditions, so the lost production cannot be treated as an equivalent tightening of the national balance.”