Free Trial

US Natgas Prices Turn Negative in Waha Hub: Reuters

NATGAS

US Natgas Prices turned negative in Texas, Californina, and Arizona May 7, amid pipeline maintenance in the Permian Basin, low demand for energy, and ample hydropower in the West, Reuters said.

  • Negative prices signa there is too much power or gas being produced in a region. Energy firms can either reduce output, pay for the gas to be taken, or flare the unwanted gas if they have a permit.
  • Next day prices at the Waha hub fell to a three-week low of minus $2.72/MMBtu May 6, compared to the average of minus 26 cents/MMBtu in April.
  • Kinder Morgan told customers that it planned to reduce flows on its Permian Highway Pipeline from May 7-12 and its Guld Coast Express Pipeline from May 14-21.
  • Energy traders have been expecting this maintenance work to turn prices negative.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.