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Natural Gas Market ‘Not Pricing In’ Storm: Pro

Tuesday, 28 Aug 2012 | 12:54 PM ET

Hurricane Isaac’s effects on natural gas over the next few days isn’t being priced into the commodity, one energy analyst told CNBC on Tuesday.

“The market isn’t really sufficiently pricing in what’s going to happen here over the next few days,” Addison Armstrong, Tradition Energy director of market research, said on “Fast Money.”

Armstrong estimated the market would lose between 12 to 15 billion cubic feet of production.

Nat Gas Market 'Not Pricing In' Storm: Pro
Demand will outpace what Gulf of Mexico refineries can process, says oil analyst Addison Armstrong.

“We’re not going to lose 15 BCF a day of demand,” he added. “There is going to be some reaction, probably comes tomorrow.”

Refineries in the path of the Gulf of Mexico storm could take about 3 million barrels of gasoline production offline this week.

And with Venezuela’s production slowed, the amount of crude oil hitting the market is actually increasing, he said.

Trader disclosure: On Aug. 28, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long CSTR; Joe Terranova is long CHKP; Joe Terranova is long EMC; Joe Terranova is long NXPI; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long PEP; Pete Najarian is long MCP; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in CFN; Jon Najarian is long call spreads in JNPR; Jon Najarian is long call spreads in XLF; Jon Najarian is long call spreads in GLD; Jon Najarian is long call spreads in SLV; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in ERY; Jon Najarian is long call spreads in GOOG; Jon Najarian is long call spreads in TOL; Jon Najarian is long call spreads in LEN; Jon Najarian is long call spreads in PSX; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long GLUU; Jon Najarian is long STSI;

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