Hurricane Delta to Track Into Gulf of Mexico

Written by on October 6, 2020 in NatGasWeather - No comments

Tuesday, October 6:   Strengthening Hurricane Delta remains on track to enter the Gulf of Mexico today, then approach Louisiana late in the week and where it’s currently forecast to track near Cameron LNG for potential continued disruptions. What was once tropical storm Gamma has weakened over the Yucatan Peninsula to a depression and isn’t expected to regain strength. But with Delta heading into the Gulf of Mexico the next several days, production is expected to be shut-in by 1-2 Bcf. However, this could be offset by disruptions to LNG sites and cargoes later in the week. In addition, once Delta makes landfall, clouds, showers, and power outages will weaken demand along the Gulf Coast. Regarding the rest of the US, we have been mentioning the weather data was too bearish and could add demand at any time, which it did overnight as the GFS added 10 CDD’s on cooler trends across the northern US next week and beyond. The European model added a more modest 6 HDD’s and wasn’t as cool trending across the northern US compared to the GFS, while still quite bearish overall. But the overnight data did add a little demand and could be reason if the nat gas markets were looking to add to yesterday’s gains.

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