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2025-09-15 20:57:44
Natural Gas Prices Plunge into a Freezing Hole: Supply-Demand Imbalance May Intensify Energy Company Sentiment. (1) US natural gas prices at the Waha hub in Texas plummeted to negative $1.26 per million British thermal units (mmBtu) on Monday, down more than 2,350% from Friday's low of about 6 cents, hitting a 17-week low. This is the sixth time Waha prices have averaged negative since 2025, significantly below the 2025 average of $1.66, highlighting a significant regional supply-demand imbalance. (2) Data shows that average natural gas production in the Lower 48 states has fallen to 107.6 billion cubic feet per day (Bcf/d) since September, down from an all-time high of 108.3 billion cubic feet per day (Bcf/d) in August. However, traders cite pipeline maintenance and other constraints, which have hindered natural gas exports from the region, as the primary reason for the negative prices. Despite significant natural gas production associated with oil production, US crude oil futures have fallen approximately 12% this year. (3) Analysts believe the persistently negative Waha prices indicate a critical need for additional natural gas pipeline infrastructure in the Permian Basin. Although new projects are under construction, they are not expected to be operational until 2026 at the earliest. Considering that oil prices may fall for the third consecutive year in 2025, some energy companies plan to cut funding for new oil drilling, which may further affect oil and gas production in the Permian region and exacerbate market concerns about future energy supply and price fluctuations.
