U.S. Henry Hub natural gas (NATGAS) contracts are gaining today as concerns about U.S. supply are adding upside pressure to the futures market. More than a quarter of Gulf of Mexico oil production and 17% of natural gas production is off, in the wake of Hurricane Rafael according to a commentary by the U.S. offshore energy regulator. The Gulf of Mexico accounts for about 15% of total U.S. oil production and 2% of natural gas production.
- According to BSEE, production losses due to the Rafael shutdown have so far amounted to 1.12 billion cubic feet of gas and about 2 million barrels of oil.
- About 310 million cubic feet of gas production was halted yesterday alone, according to Bureau of Safety and Environmental Enforcement (BSEE) estimates.
- Oil and gas production workers were evacuated from about 10% of all production platforms in the region
- Yesterday, the National Hurricane Center (NHC) reported that Hurricane Rafael will 'rage' in the central Gulf of Mexico for some time, before turning south and southwest in the following days.
NATGAS futures opened today with bullish gap at $2.75 per mmbtu; they have now risen to near $2.83.
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Source: xStation5
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