The future of natural gas fell early Tuesday, amid expectations of the effects of Hurricane Ida. The October Nimex contract fell from 6.8 cents to 4.237 / MMBtu around 8:55 p.m.
According to the National Hurricane Center (NHC), Ida was suffering from severe depression in northern Mississippi until early Tuesday.
“Depression is moving northeast at about 12 miles / h, and Ida is slowly moving northeast over the next two days,” HHH said. Predicts a slight change in strength over the next 48 hours.
While the hurricane itself is weakening, Ida’s impact on the natural gas market will last for days or weeks, said McKenzie analyst Wood Spencer.
“Almost all Mexican Gulf production is closed,” the analyst told customers early Tuesday. Although one couple said they were ready to receive the volumes again, “most of the beaches did not comment on the status of their systems or return to service.”
During last year’s hurricane, when hurricanes hit the beach, “they generally started to return in a few days and generally returned to normal after about two weeks,” he said. If Ida causes serious damage to coastal systems, the timeline could actually be extended.
Analysts say that the effect of interest will last longer.
The Intergovernmental Authority on Development (IGAD) reported 895,000 customers without power on Monday. Dina Rodriguez, CEO of New Orleans, said that more than 20,000 teams are expected to work together to restore energy supply.
Energy data management data from the Central Continent Independent Operator (MACO) state shows that a generation of natural gas-burning gases is falling “more than any other source of oil,” Spingler said.
“Nuclear power has also been weakened offline with Entergy’s Waterford 3 plant, and the River Bend station is operating at 40% capacity in the direction of the transmission line,” the analyst said.
That Ida appears to have taken over liquid natural gas export facilities in Louisiana.
The company added: “On the depression side, there has been a widespread trend in the south, with Ida and weather forecasts over the weekend.” “የተፈጥሮ Natural gas markets will take a closer look at how long it will take to restore production and energy.
Major weather models have reduced demand in one week for the next week. According to Natas Wire:
Around 8:55 a.m., October oil futures fell from 71 cents to 68.50 / bb.