Hurricane Ida Continues to Push Prices Up. The Beacon, 09/06/2021

The Headline:   Hurricane Ida caused all 13 Gulf drilling rigs to shut down, and pushed prices up this week while we wait for them to reopen.   Warmer weather and market nervousness about storage and drilling rig counts in general sent us to new 52-week highs.   Near-term prices will depend heavily on the Gulf rigs’ reopening schedule, with fundamentals still not inspiring any confidence.              

The Bottom Line:    This week’s action highlights the vulnerability of the current market – the shut-in gas amounts to only ~7% of this week’s injection, but was enough to drive prices up again.  Best to be ready to strike when the market cooperates – let’s get your LOA signed, your bidders lined up, and your strategy in place so that you are ready when the time comes to get a good price.           

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