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Texas Natgas Price Turns Negative Despite Record Heatwave

NATGAS

Spot natural gas prices at the Waha hub in West Texas turned negative for the third time in July, as record-breaking heatwaves could boost US power demand to an all-time high, Reuters said.

  • Rising temperatures are increasing cooling demand as homes and offices increase air conditioning use.
  • US cooling demand is expected to be 27 CDD above normal across the whole US this week.
  • However, strong production, particularly from the Permian basin, is offsetting that rise in cooling demand on the prompt.

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