Gas prices in the U.S. fell below zero for the first time since 2020 as increased production overwhelms pipeline networks and mild weather curbs consumption.
U.S. natural gas prices fell below zero for the first time since 2020 as increased production overwhelms pipeline networks and stifles supply in the region.
Market players said gas for next-day delivery at the Waha center in the Permian Basin fell to about minus $2 per one million British thermal units on Tuesday. This was compared to about $5 a week ago.
Producers are actually paying someone to take the gas away, something that hasn’t happened in 2 years. Seasonal pipeline maintenance worsens the constraints on the region’s network of gas ducts as mild weather reduces consumption.
America’s gas production rose to a record this year as global supply disruptions pushed up heating and power plant fuel prices and boosted demand for US exports.
Even Europe, long deprived of the Russian imports it needed, replenished its stocks. But the risk of a winter gas crisis remains for countries on both sides of the Atlantic. US regulators have warned of famine in the Northeast, a region that relies on gas from overseas to survive the coldest months.