Earthquake boosts US natural gas prices higher at the end of the day

According to Dow Jones New York reported on August 24: Natural gas ** settlement prices rose on Tuesday, as the earthquake on the East Coast of the United States increased the possibility of nuclear power plant shutdowns, and the weather forecast showed that temperatures in most parts of the United States rose.

The settlement price of natural gas** contracts for September delivery on the New York Mercantile Exchange rose 10.4 cents, or 2.7%, to $3.993 per million British thermal units. In early trading, the contract price climbed above the $4 mark.

After the meteorological department raised their forecast for the temperature in the next two weeks, the price of ** has maintained its upward trend throughout the day. However, after the 5.9-magnitude earthquake in the Virginia area on Tuesday afternoon, natural gas ** received support again.

After the earthquake, natural gas prices immediately climbed to an intraday high of $4.026. The earthquake occurred at 1:51 pm on the 23rd, Washington time (Beijing time at 1:51 am on the 24th). At the end of Tuesday's electronic trading, the price of ** rose briefly to $4.048, but then fell back below the $4 mark.

Traders worried that the shutdown of nuclear power plants after the earthquake may lead to increased demand for natural gas power generation.

Jim Ritterbusch, head of transaction consultancy Ritterbusch and Associates, pointed out in a report to clients that the quake may affect nuclear power plants in the region.

North Anna Power Station in central Virginia stopped nuclear power generation and switched to diesel power generation to maintain electricity demand. After the earthquake, the plant was automatically shut down. The U.S. Nuclear Regulatory Commission said that several nuclear power plants on the eastern coast of the United States have announced accidents. This is one of the four most serious emergencies in emergencies.

Pax Saunders, an analyst at Houston-based Gelber & Associates, said that because of the partial suspension of the post-earthquake inspection, there is not much direct fundamental concern about the natural gas market.

At the same time, WSI, a private weather forecasting agency, stated in a report to customers that temperatures in the central and southern regions of the United States are expected to be higher than usual. Over the weekend, weather forecasting agencies expect that most of the United States will need air-conditioning and refrigeration.

The rise in temperature often leads to an increase in demand for natural gas for power generation because residents use air-conditioning for refrigeration.

In the early summer of this year, the price of natural gas fell from a high of nearly $5, as there was little demand for refrigeration in early summer. The potential of the US economic slowdown also weighed on prices. The economic slowdown may lead to further reductions in the demand for electricity from industrial users.

Before Tuesday, the settlement price for the last week of ** price was below $4.

The National Hurricane Center of the United States stated that it is expected that Hurricane Irene will move northwards to the east coast of the United States. Irene, currently classified as a Category 2 storm, is expected to evolve into a super hurricane within the next 48 hours, but this is unlikely to constitute a buzz on natural gas production in the Gulf of Mexico.

The National Hurricane Center of the United States traces two other storms on the coast of Africa. The probability of one of the storms becoming a tropical cyclone within the next 48 hours is 20%.