Potential Supply Disruptions Boost Prices

  • Natural-gas futures are on track for a more than 50% quarterly gain due to the potential for supply disruptions caused by an active Atlantic hurricane season.
  • The U.S. has ample natural gas in storage, but offshore production could be shut down during hurricanes.
  • NOAA predicts an above-normal Atlantic hurricane season with 17 to 25 named storms and eight to 13 hurricanes.
  • Above-average temperatures support cooling demand and power generation, contributing to higher prices.

Natural-gas futures are experiencing a more than 50% quarterly increase due to the possibility of supply disruptions caused by an active Atlantic hurricane season. The U.S. has ample natural gas in storage, but offshore production may be shut down during hurricanes. NOAA predicts an above-normal hurricane season with 17 to 25 named storms and eight to 13 hurricanes. Above-average temperatures support cooling demand and power generation, contributing to higher prices.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the natural gas market, including quotes from experts in the field, and discusses factors such as hurricane season predictions, storage levels, and temperature forecasts that affect prices. It also includes relevant data from the Energy Information Administration. However, it could be improved by providing more context on the overall state of the energy market and potential impacts on consumers.
Noise Level: 6
Noise Justification: The article provides some relevant information about natural gas futures and the potential impact of an active hurricane season on production, but it is mostly focused on short-term price fluctuations and speculation without providing much analysis or actionable insights. It also includes some irrelevant advertisements and promotional language.
Public Companies: Quantum Gas & Power Services ()
Key People: Beth Sewell (President and Chief Executive Officer at Quantum Gas & Power Services), Robbie Fraser (Manager for Global Research and Analytics at Schneider Electric)

Financial Relevance: Yes
Financial Markets Impacted: Natural gas futures
Financial Rating Justification: The article discusses the impact of an active Atlantic hurricane season on natural gas futures and its potential to disrupt U.S. production, affecting prices and market performance.
Presence Of Extreme Event: a
Nature Of Extreme Event: Natural Disaster (hurricane)
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: An extreme event mentioned in the article is an active Atlantic hurricane season, which has the potential to disrupt U.S. production and shut down offshore production. However, its impact is rated as Minor due to no specific details about the severity of the hurricanes or their consequences.

Reported publicly: www.marketwatch.com