FAST FIVE: Nat Gas Plummets 10%, Slides Under $2 In Biggest One-Day Drop In 20 Months
Nat Gas Plummets 10%, Slides Under $2 In Biggest One-Day Drop In 20 Months Tyler Durden Mon, 09/21/2020 – 11:22 Natural gas futures tumbled below $2 amid a broad rout in commodity markets and on speculation that Tropical Storm Beta may spur power outages and curtail LNG exports along the Gulf Coast (as Bloomberg notes, Beta is a slow-moving storm that will bring flooding rains in Louisiana as it toward Texas to come ashore near Corpus Christi).
“Although overall it's a short-term effect, each week that we have this lower demand, we get higher storage injections.
As Bloomberg further observes, citing BNEF data, gas demand from power generators is estimated at just under 30 bcf for Monday, lowest for any Sept.
Scheduled gas flows to LNG export terminals -33% from Sept.
Those long positions came despite expectations stockpiles will hit record highs by the end of October, which should remove lingering concerns about price spikes and gas shortages this winter.