🛢 Energy & Commodities risk-off · 0–6 months
A what‑if from the future

What if a Category 6 storm hits the Gulf Coast refinery corridor?

Cleanest trade is the crack spread: a sub-900mb storm into the Houston refining/petrochem corridor knocks out crude-processing and ethylene, so gasoline/diesel and plastics feedstocks spike harder than crude itself. Rhymes with Hurricane Harvey (2017), which idled ~25% of US refining and blew out Gulf gasoline cracks for weeks. Forward angle: today's larger US export-terminal exposure means a bigger global products/LNG shock than Harvey, even as upstream crude is well-supplied.

11%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 11% · 90% range 1–22% · 40 analogues · measured class agriculture 62% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — agriculture ≈1.9132/yr → 62% in 6 mo62%
Analyst prior · editorial share 19% of the class12%
Pooled · weight 87%12%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)12%
Published11%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. An unprecedented sub-900mb storm devastates Houston's refinery and petrochemical corridor, spiking fuel and plastics prices. The trigger decomposes into signed root‑shocks — Climate/crop supply ▲ · Oil supply risk ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +5.4%
hist -0.86–+3.18% · other way +0.31% (n=11)
2WTI crude CLon Hyperliquid 📈 chartCommodity▲ +4.5%
hist -2.39–+2.44% · other way +4.52% (n=11)
3Energy sector XLEon Hyperliquid 📈 chartEquity▲ +3.1%
hist -0.46–+1.62% · other way +1.65% (n=11)
4United Airlines UAL 📈 chartEquity▼ -2.7%
hist -2.93–+3.29% · other way +7.01% (n=11)
5ExxonMobil XOM 📈 chartEquity▲ +2.2%
hist +0.55–+1.49% · other way -1.1% (n=12)
6Chevron CVX 📈 chartEquity▲ +2.0%
hist +0.7–+1.29% · other way +0.62% (n=12)
7Delta DAL 📈 chartEquity▼ -2.3%
hist -2.11–+1.78% · other way +6.63% (n=11)
8Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.1%
hist -0.61–-0.36% · other way +0.07% (n=11)
9Tech sector XLK 📈 chartEquity▼ -1.0%
hist -0.63–+0.09% · other way +0.18% (n=11)
10Wheat WHEATon Hyperliquid 📈 chartCommodity▲ +0.7%
hist +0.13–+0.51% · other way +0.53% (n=11)
11Gold XAUon Hyperliquid 📈 chartCommodity▼ -0.9%
hist -0.59–-0.31% · other way +1.43% (n=11)
12Corn CORNon Hyperliquid 📈 chartCommodity▲ +0.7%
hist -0.21–+1.52% · other way +2.69% (n=11)
1330y Treasury yield DGS30 📈 chartRate▲ +9bp
hist -0.86–+14.15% · other way +16.0% (n=12)
1410y Treasury yield DGS10 📈 chartRate▲ +8bp
hist -2.17–+17.18% · other way +16.2% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): United Airlines -2.7% · ExxonMobil +2.2% · Chevron +2.0% · Delta -2.3% · Tech sector -1.0% · 30y Treasury yield +9bp

Why we may diverge from history

Trust the cascade longs on CL and NG: history's negatives lean on 2014/2020 OPEC price-war glut windows, the opposite of this refinery-destroying surge; COIN/HOOD history is just Iran-window BTC beta.

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Iran hostage crisis / US freezes Iranian assets 1979-11 Israel strikes Iran — Operation Rising Lion 2025-06 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Saudi-Russia oil price war 2020-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 Soviet August coup attempt against Gorbachev 1991-08 Chernobyl disaster 1986-04 1986 oil price collapse 1986-02 Gold peaks at $850 1980-01 Soviet invasion of Afghanistan 1979-12 1979 Iranian Revolution oil shock 1979-01 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Hezbollah pager and device explosions across Lebanon 2024-09 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 April 2024 Iranian drone-and-missile barrage on Israel 2024-04 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Niger coup d'etat 2023-07 Wagner Group mutiny against the Kremlin 2023-06 ExxonMobil posts most profitable year for any US oil company 2023-01 US-led 240-million-barrel SPR release answers the Ukraine spike 2022-03 Houthi drone-and-missile strike on Aramco's Jeddah depot 2022-03 Tin hits nominal record on LME above $48,000/t 2022-03 Russia invasion sends wheat to record high 2022-03 Burkina Faso coup d'etat 2022-01 Houthi drone-and-missile attack on Abu Dhabi oil sites lifts Brent to 7-year high 2022-01 Mali coup d'etat 2020-08 Gold closes above $2,000/oz for the first time 2020-08 Abqaiq-Khurais strike triggers the biggest Brent spike on record 2019-09 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Houthi drones strike Saudi East-West crude pipeline 2019-05 IPBES warns ~1 million species face extinction 2019-05 Bitcoin Cash hash war capitulation 2018-11 China retaliates: $50B tariff list incl. soybeans 2018-04 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
Volatility VIXLONG+3.6% · 5d +2.9%69%34 0.34✓ matches cascade
AMD AMDSHORT-1.3% · 5d -0.8%67%36 0.27✓ matches cascade
XLE XLESHORT-1.4% · 5d -0.5%64%33 0.26⚠ differs
CL CLSHORT-3.9% · 5d -1.8%65%33 0.25⚠ differs
HOOD HOODLONG+5.7% · 5d -0.5% ↺ fades64%18 0.23⚠ differs
USDJPY USDJPYLONG+1.4% · 5d +0.2%62%33 0.22✓ matches cascade
BRENT BRENTSHORT-2.7% · 5d -1.4%61%33 0.19⚠ differs
High-yield credit HYGSHORT-0.6% · 5d -0.2%62%33 0.19✓ matches cascade
CORN CORNLONG+1.1% · 5d -0.5% ↺ fades59%33 0.18✓ matches cascade
10y yield DGS10LONG+12bp · 5d +6bp59%40 0.18✓ matches cascade
GBPUSD GBPUSDSHORT-0.6% · 5d -0.3%61%33 0.18✓ matches cascade
MU MUSHORT-2.7% · 5d -2.8%60%36 0.17✓ matches cascade
MSTR MSTRLONG+4.1% · 5d -3.3% ↺ fades61%33 0.16⚠ differs
COIN COINLONG+5.2% · 5d +0.9%59%18 0.15⚠ differs

Why this probability

Cat-6/sub-900mb direct Houston-corridor hit in one 6mo window is low though season-elevated. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.