Bloomberg reported that speculation that Tropical Storm Isaac will not have much of an impact on gas production in the Gulf of Mexico caused natural gas futures to drop to the lowest level seen in two months.
As quoted in the market news:
Gas slid 3.6 percent, the biggest one-day drop since Aug. 10. The National Hurricane Center forecast Isaac may become a hurricane off the west coast of Florida in about four days, according to a 2 p.m. advisory. The Gulf accounted for about 7 percent of U.S. gas production in 2011 compared with 11 percent in 2008.
Gas for September delivery dropped 10 cents to $2.702 per million British thermal units on the New York Mercantile Exchange, the lowest settlement price since June 25. The futures slid 0.6 percent this week, capping losses for a fifth straight week. Gas is down 9.6 percent this year.