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In the wake of Harvey…
Wednesday saw natural gas futures up nearly 1% on news that Hurricane Isaac would push more production offline and potentially damage the natural gas infrastructure in the affected region.
Nearly 72% of the Gulf’s natural gas output was suspended as of Wednesday, up 5 percentage points from the previous day.
Flooding remains the major concern for natural gas infrastructure in the area, but no long-term damage is expected.
Reuters reports that Isaac, the category 1 hurricane, is expected to move inland at a relatively slow 6 mph.
According to the Wall Street Journal on Wednesday, the front-month natural-gas contract for September settled at $2.634/MMBtu, up two cents, while the October natural-gas contract settled at $2.685/MMBtu, up 5.2 cents.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com