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Hurricanes and gas prices: a meteorological and economic connection

The gas price lately has been directly influenced by some extreme meteorological elements such as hurricanes. These natural phenomena, often unpredictable in their intensity, have a direct impact on the gas industry, especially in vulnerable regions like the Gulf coast in the United States.

In recent years, the production of liquefied natural gas (LNG) in the United States has experienced a boom, particularly along the Gulf coast. This region, rich in resources and infrastructure, has become a nerve center for the gas industry. However, its location makes it susceptible to hurricanes, which can cause significant disruptions in production and, consequently, fluctuations in the gas price.

In the past, the main concern related to hurricanes was the potential disruption of oil production, given the density of oil platforms in the Gulf of Mexico. But with the rise of LNG, gas is now in the spotlight.

Factors that can influence the gas price

The growing demand for LNG has transformed the energy landscape, connecting global markets like never before. But this interconnection has a downside: it makes gas prices more sensitive to regional events. For example, labor issues in one country can affect prices in another continent.

A significant example of this interdependence was the incident at the Freeport LNG terminal in 2022 when a fire halted operations. Despite the importance of this terminal for Europe, it was the American market that felt it the most, with strong variations in gas futures prices.

In conclusion, as we approach the hurricane season, the gas industry faces new challenges. The increasing interdependence of markets requires greater resilience and preparation to address the impacts of hurricanes and ensure the stability of gas prices in a constantly changing world.

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