Natural gas prices rose ever so slightly Wednesday on lingering concerns Hurricane Florence might impact gas production and supply flows when it makes landfall later this week.
Futures for October delivery ended a tiny 0.04% higher at $2.8290 a million British thermal units on the New York Mercantile Exchange. The small gain nonetheless means prices have closed higher for four straight sessions.
Data late Tuesday from Platts Analytics indicated the storm could result in the loss of up to 2 billion cubic feet per day in supplies after hitting the Carolina shores and cutting a path inland, perhaps into the gas-producing Appalachian region.
The National Hurricane Center said Wednesday that Florence’s peak winds have decreased slightly, but said the size of the wind field has increased. “Florence is still forecast to be an extremely dangerous major hurricane when it nears the U.S. coast late Thursday and Friday,” NHC said.
Investors also began to stake positions Wednesday in anticipation of Thursday’s report from the Energy Information Administration on weekly gas injections into storage. A survey by The Wall Street Journal found that analysts, on average, expect storage levels rose by 69 billion cubic feet of gas during the week ended Sept. 7. That would compare with a five-year-average build of 74 bcf for that week.
Write to Dan Molinski at [email protected]