Hurricane Disrupts Supply
There would appear to be a dichotomy in the energy markets this week with the chorus of demand fears and talk of building global floating storage of crude and fuels battling against the temporary disruption of supply from the US Gulf of Mexico.
With the downside extension in November natural gas prices yesterday taking place in the face of landfall of a hurricane, it is clear that the trade is looking beyond the current weather event to near term oversupply. In short, it is not surprising to see prices slide given that the threat against production is dissipating quickly especially with a slight narrowing of areas seeing hot temperatures in the US.
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