Hurricane Florence became the sixth named storm of the 2018 Atlantic hurricane season and the first major hurricane of the year as it reached Category 3 status with winds roaring past the 125 mph mark. It was mother nature’s notification that hurricane season is in full swing and natural gas traders are keen to utilize the Direxion Daily Nat Gas Rltd Bull 3X ETF (NYSEArca: GASL) and Direxion Daily Nat Gas Rltd Bear 3X ETF (NYSEArca: GASX).
Inclement weather that manifests itself in the form of hurricanes can disrupt natural gas supply, causing fluctuations in its price. Though the price of natural gas has experienced a steady decline in the past year, it appears to be on a slight uptick since the beginning of hurricane season on June 1, which could see more increases in the second half of storm season.
The U.S. Energy Information Administration highlights three major supply and demand factors that can influence the prices of natural gas.