Natural Gas Prices

Hurricane passes by the Gulf Coast but 15 more on their way ///

Natural Gas would have gone down today but a report put out by the University of Colorado predicts about 15 more hurricanes this year. The potential for one of these hurricanes to knock out a refinery or rig in the gulf coast is a possibility. With this fear is a frantic natural gas traders market with energy buyers and sellers speculating on high octane emotions. The volatility of the Natural Gas market is always something to watch in utter awe as the slightest thing triggers some amazing spikes in both the natural gas futures and electric prices.

Natural gas trend for the last 6 months ///

We have seen a trend since May as Natural Gas has dropped lower and lower reaching prices under $6 MMBtu. These prices have caused electric rates in Texas to be worth drooling over. Just today a large commercial facility locked in an electric rate for 6.9 cents KWh on a 12 month contract. Considering rates were right below 10 cents kwh in the not so distant past we would be quick to jump on this price if we had an opening in our energy contract to do so.

Oil and gas futures cam down but not natural gas

Oil and gasoline futures came down substantially on Thursday as people realized the tropical storms reaching the gulf had died down enough to not be considered dangerous. There is now no fear of them hitting the refineries as they have been down graded below the tropical storm levels they were at. 

Investors have started to pay more attention to the struggling economy and the falling stock market rather then where oil and gas futures are going.

Natural gas ended higher even though large surpluses were reported in the storage report

Natural Gas futures ended higher after several ups and downs despite the government surplus report showing a large inventory of Natural Gas in the ground. The Natural Gas inventories have been growing larger then expected and as an energy trader you would expect this would cause energy futures to start coming back down but this has not happened yet.

Tropical storm Erin appeared spared most of the Gulf Coast oil and gas infrastructure.  Tropical storm Dean is expected to pass to the south of the Gulf, making landfall on Mexico’s Yucatan Peninsula.