Reported 2 months ago
In West Texas, negative prices for natural gas have become increasingly common, occurring on 57 trading days so far this year, significantly up from previous years. As of the end of July, Waha gas prices closed at -$0.845 per million British thermal units, with even lower prices earlier in May. This anomaly is driven by regional oversupply due to record-high U.S. oil production from the Permian Basin, which has outpaced delivery capabilities to areas with higher demand. Despite rising electricity demand due to extreme heat, a surplus of natural gas is keeping prices depressed.
Source: YAHOO