Natural Gas is trading flat ahead of today’s inventory report due shortly. Gas is trading at 3.701. Tropical Storm Dorian strengthened as it moved across the Atlantic on a westward path that may take it into the Caribbean Sea, according to the U.S. National Hurricane Center. Dorian, with maximum sustained winds of 60 miles (95 kilometers) per hour, was about 700 miles west of the Cape Verde Island and moving west-northwest at 17 mph, according to a center advisory before 5 a.m. ECT. The center forecasts little change in Dorian’s strength for the next 48 hours, the advisory shows. The storm may gradually turn west through tomorrow, the center said.
If Dorian can hold together as it crosses the Atlantic, there’s a possibility it may bring wind and rain to the U.S. South or the Bahamas early next week, Michael Schlacter, founder and president of Weather 2000 Inc. in New York, said yesterday.
Atlantic systems are followed by commodities traders because they can affect oil and natural gas production as well as orange crops.
The Gulf of Mexico is home to about 6 percent of U.S. natural gas output and 23 percent of oil production and more than 40 percent of petroleum refining capacity, according to the Energy Department. The Bay of Campeche, at the southern end of the Gulf, is where Petroleos Mexicanos, Mexico’s state-owned oil company, has most of its production.