The numbers are out: an active storm season is predicted for the Atlantic, and natural gas-related exchange traded funds (ETFs) are already gearing up and moving on the news.
More storms than “normal” – about 16 – are anticipated to hit the Atlantic coast of the United States this season. Of these, eight are expected to become hurricanes and about four of them are going to be intense, according to the Tropical Storm Risk. [The Movements of Natural Gas ETFs.]
Alex Morales and Brian K. Sullivan for Bloomerg BusinessWeek reports that the forecast joins a growing number of predictions that the 2010 Atlantic hurricane season, which starts June 1, will be among the most active on record. As the number of hurricanes rises, so do the chances of one striking the oil-rich Gulf of Mexico or Florida’s crop areas.
The Gulf is home to about 30% of U.S. oil and 12 % of U.S. natural gas production, the U.S. Energy Department says. It also has seven of the 10 busiest U.S. ports, according to the Army Corps of Engineers. Meanwhile, BP is still trying to cap a leaking offshore oil well that has created a devastating slick that is washing up in Louisiana. Attempts to stop the oil will be hampered if and when a tropical storm or hurricane passes through the Gulf of Mexico. [How to React When Natural Gas Rebounds.]
For more stories about natural gas, visit our natural gas category.
- First Trust ISE-Revere Natural Gas (NYSEArca: FCG)
- United States Natural Gas (NYSEArca: UNG)
- iPath Dow Jones AIG Natural Gas ETN (GAZ)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.