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US natural gas futures reached a nine-month high as producers shut Gulf offshore wells ahead of Hurricane Laura, pushing output to its lowest since 2018. LNG exports fell to an 18-month low as vessels avoided the storm.
Front-month prices were up about 41% in August, helped by sharp gains in European and Asian benchmarks.
Storm-related output losses tighten US supply and lift gas prices, which raises the cost of nitrogen fertilizer. The rally is driven by a temporary weather shock, so price risk depends on how quickly Gulf production returns.
brecorder.comReutersAug 26, 2020After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% 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.
