U.S. gas futures push higher as Irma loses strength
U.S. gas futures started the week around the feet on Monday, after Hurricane Irma struck the U.S. southeast with less force than once feared, easing worries on the hit to energy demand.
Irma hit Florida on Sunday morning as being a dangerous Category 4 storm, the second highest level to the five-step Saffir-Simpson scale, but by afternoon simply because it barreled the west coast, it weakened to some Category 2 with maximum sustained winds of 110 miles per hour (177 kph).
It is forecast to weaken to some tropical storm over northern Florida or southern Georgia later Monday.
U.S. propane for October delivery was at $2.926 per million British thermal units by 8:45AM ET (1245GMT), up 3.5 cents, or around 1.2%.
It saw a weekly diminished nearly 6% yesterday as traders begin to deal with the advantage that higher summer need for the commodity is coming to a conclusion.
Demand for gas tends to increasing amount of the summer months as warmer temperatures improve the need for gas-fired electricity to power air con.
But with autumn as a consequence of begin with September 22, power burns to provide air-con demand have in all probability peaked right now, market analysts said.
Total propane kept in storage currently stands at 3.220 trillion cubic feet, good U.S. Energy Information Administration, around 6.2% below what levels at this time not too long ago and mostly using the five-year average because of this time of year.
Early market expectations for this week’s storage data due on Thursday is good for a build inside of a range between 72 and 83 billion cubic feet within the week ended September 8.
That compares having a gain of 65 billion cubic feet inside preceding week, a build of 62 billion a year earlier including a five-year average rise of 63 billion cubic feet.