U.S. Natural Gas Prices Plummet Amid Regional Oversupply

Natural gas prices at the Waha trading hub in the Permian Basin, Texas, experienced a significant drop last week, reaching as low as -$9.75 per million British thermal units. According to Jin10, the region, which accounts for approximately a quarter of U.S. natural gas production, has seen increased oil output due to heightened tensions between the U.S. and Iran. This rise in oil production has led to a corresponding increase in natural gas output. However, limited infrastructure has resulted in a localized surplus of natural gas, forcing producers to flare excess capacity.