Gold Silver Reports — Natural Gas MCX Trading Zone of 182-204 — Natural Gas on MCX settled down -1.6% at 190.70 as trader book profit in their long positions while earlier in the morning session prices rose to a new eight-week high of 197.80 as traders continued to eye potential storm activity in the Gulf of Mexico. In evening session prices came under pressure erasing earlier gains, on expectations that storms in the Atlantic Ocean wouldn’t disrupt production as much as previously expected.
The National Hurricane Center said Tropical Depression Nine is expected to strengthen into a tropical storm and move into the eastern Gulf of Mexico in the next 48 hours. Storms in the Gulf of Mexico can disrupt offshore natural-gas production. The BSEE said Tuesday that 10% of natural gas production in the Gulf of Mexico had been shut in. But offshore production accounts for a small percentage of total natural-gas output in the U.S. In addition, the storm isn’t expected to disrupt output further.
Updated weather forecasting models pointed to very warm late summer temperatures into mid-September, boosting demand expectations for the cooling. High pressure will dominate the southern and eastern US with temperatures mainly in the 80s to lower 90s. Although, it’s expected to remain unsettled over the west-central US into the Midwest as weather systems bring showers, thunderstorms, and modest cooling.