🛢 Energy & Commodities mixed · 6–18 months
A what‑if from the future

What if Collapsing JKM-HH arb idles US LNG, cargoes cancelled?

A global glut collapses the JKM and TTF premium over Henry Hub plus shipping, making US cargoes uneconomic; offtakers cancel liftings and feedgas demand drops, backing gas into storage.

16%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 16% · 90% range 0–32% · 40 analogues · measured class deflation 44% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 44% in 18 mo44%
Analyst prior · editorial share 36% of the class16%
Pooled · weight 87%17%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)17%
Published16%

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 6–18 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 mixed shock. A global glut collapses the JKM and TTF premium over Henry Hub plus shipping, making US cargoes uneconomic; offtakers cancel liftings and feedgas demand drops, backing gas into storage. The trigger decomposes into signed root‑shocks — Natural gas ▼ · European energy ▼ · Inflation expectations ▼ · Risk appetite ▼ — 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
1Natural gas NGon Hyperliquid 📈 chartCommodity▼ -0.5%
hist -3.69–+0.72% · other way +3.59% (n=10)
2EUR/USD EURUSDon Hyperliquid 📈 chartFX▲ +0.2%
hist -0.69–+0.32% · other way -1.41% (n=10)
330y Treasury yield DGS30 📈 chartRate▼ -1bp
hist -6.6–+2.05% · other way +22.4% (n=12)
410y Treasury yield DGS10 📈 chartRate▼ -1bp
hist -7.4–+1.73% · other way +28.1% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): 30y Treasury yield -1bp · 10y Treasury yield -1bp

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.

Henry Hub natural gas hits a 25-year low amid record US production 2024-11 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 WTI crude futures settle negative as demand collapses 2020-04 Saudi-Russia oil price war 2020-03 Oil collapses from $147 to the $30s as the GFC craters demand 2008-12 1986 oil price collapse 1986-02 Iran hostage crisis / US freezes Iranian assets 1979-11 1979 Iranian Revolution oil shock 1979-01 US intervention removes Maduro in Venezuela 2026-01 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 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 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Niger coup d'etat 2023-07 PJM grid emergency during Winter Storm Elliott 2022-12 Texas grid failure during Winter Storm Uri 2021-02 Gold closes above $2,000/oz for the first time 2020-08 Norilsk Nickel Arctic diesel spill 2020-05 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 China rout & circuit-breaker / yuan slide 2016-01 SNB introduces negative interest rates 2014-12 Russian ruble 'Black Tuesday' 2014-12 OPEC abandons output defense, opting for market share vs US shale 2014-11 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09 Egyptian revolution / Mubarak uprising 2011-01 OPEC's largest-ever cut answers the 2008 demand collapse 2008-12 Crude oil all-time high 2008-07 Henry Hub natural gas spot price peaks during 2008 commodity boom 2008-07 Platinum hits all-time record near $2,290 on South African power crisis 2008-03 South Africa Eskom power emergency spikes platinum/PGMs 2008-01 Amaranth Advisors natural-gas blowup 2006-09 Northeast blackout cascading grid failure hits ~55 million 2003-08 OPEC and non-OPEC Vienna pact ends the 1998 price war 1999-03 Soviet August coup attempt against Gorbachev 1991-08 Gulf War air campaign begins 1991-01 1986 oil price collapse bottoms below $10 a barrel 1986-07 Chernobyl disaster 1986-04
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
NG NGSHORT-3.0% · 5d -3.1%66%32 0.31✓ matches cascade
Bitcoin BTCSHORT-0.4% · 5d -3.5%69%21 0.31·
10y yield DGS10SHORT-6bp · 5d +2bp ↺ fades64%40 0.22✓ matches cascade
EURUSD EURUSDSHORT-0.7% · 5d -0.1%61%31 0.20⚠ differs
Gold XAULONG+0.6% · 5d -0.3% ↺ fades56%32 0.12·
30y yield DGS30SHORT-6bp · 5d +2bp ↺ fades57%40 0.11✓ matches cascade
US dollar DXYLONG+0.2% · 5d +0.0%51%40 0.02·
Volatility VIXSHORT-0.9% · 5d -1.8%45%35 0.00·
High-yield credit HYGLONG+0.9% · 5d +0.2%43%30 0.00·

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.