The lead NYMEX natural gas futures contract had its single largest daily gain going back to January. It took a trifecta of factors to get a pop like this in what has otherwise been a quiet summer. Number 1) as mentioned yesterday, Carolinians are getting back to work following Hurricane Florence; number 2) the cooler air from a Hurricane that typically results in lower electrical demand is being held in place by a warm air mass that’s keeping people from Chicago to New York in a hot humid mess and number 3) China announced they would limit tariffs on LNG shipments from the U.S. to 10% from the 25% on most other goods. The last one is a moot point seeing as there’s only a limited amount of gas that’s able to be shipped offshore but traders don’t care. Even with the big gain gas is still being held within the larger range. Locally, storage builds in Ontario have been making significant gains and the year over year shortfall has been narrowing. That may become an issue as far as interruptible balancing transactions are concerned down the road if October weather ends up being warmer than normal. (MB)
Your Morning Coffee
How is it mid-September already? It was May long-weekend 6 seconds ago!