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Grid failures shut refineries and gas production; natural gas spot prices spike.
WikipediaAfter 342 past weather events, Natural Gas moved a median -0.7% over 5 sessions (47% higher; middle half -11.0% to +9.6%), and -1.2% over 20.
After 50 past weather events, ULSD / Diesel moved a median +0.4% over 5 sessions (54% higher; middle half -4.8% to +5.7%), and +8.8% over 20.
After 72 past weather events, Crude Oil (WTI) moved a median +1.6% over 5 sessions (63% higher; middle half -2.7% to +5.3%), and +5.6% over 20.
After 123 past weather events, Live Cattle moved a median +0.1% over 5 sessions (54% higher; middle half -0.7% to +1.1%), and +0.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Winter Storm Uri froze wellheads and gathering systems, cutting Texas and Mid-Continent gas production just as heating demand surged, which drove the extreme spot natural gas price spike over the window ending 2021-02-17.
Winter Storm Uri froze Texas wellheads and cut gas production just as heating and power demand surged, so the supply shock and demand spike sent natural gas spot prices sharply higher.
Winter Storm Uri froze wellheads and gathering systems, cutting Texas and Mid-Continent gas production just as heating demand surged, which drove the extreme spot natural gas price spike over the window ending 2021-02-17.
Winter Storm Uri froze Texas wellheads and cut gas production just as heating and power demand surged, so the supply shock and demand spike sent natural gas spot prices sharply higher.
Winter Storm Uri produced an extreme short-lived spike in spot natural gas prices from freeze-offs and heating demand, and the -64% one-day drop on 2021-02-18 is most plausibly the collapse of that spike as temperatures moderated and supply and demand normalized.
Winter Storm Uri produced an extreme short-lived spike in spot natural gas prices from freeze-offs and heating demand, and the -64% one-day drop on 2021-02-18 is most plausibly the collapse of that spike as temperatures moderated and supply and demand normalized.
