The US gas prices facilitate the record output

On Monday, the US earth gas futures sat down on a two-week deep in the middle of record editions, negative point prices in the Waha hub and the forecasts for mild weather. Natural gas in the Waha-Hub-a regional price center for gas in the Perm basin in West-Texas-sold for a large part of 2024 for a large part of 2024, a trend that continued in the current year. In fact, the prices in the hub spent 164 days in the negative area and at the end of August a lowest low -7 US dollar/mmbtu, really historical lows. The Permian slate boom led to an increase in the associated gas production, whereby the performance grew faster than the capacity of taking away. As a result, the Perm gas infrastructure has been saturated in recent years and effectively means that manufacturers sometimes have to pay for someone to take their gas so that they can continue to produce something more valuable: crude oil.

However, the gas stocks remained below the normal level for this season after extreme cold in January and February. US Natural gas futures at 11:15 p.m. ET fell by 1.3% to $ 4.058 per million British heat units (MMBTU) and made the contract for the lowest conclusion since February 28th.

The price drop came despite the robust LNG gas flows. The gas flows to US LNG export systems were 15.6 BCFD and voted on the record of the last month. The Last eia report showed that the US pension companies for the week 62 BC. This further depressive storage with the inventory of 27% under one year and 11.9% below the five -year average. However, the close-up edition continued to provide profits, whereby the output in the lower 48 states in March 105.7 BC.

Similarly, the European natural gas futures went to € 41.7/MWh and loosened after the rally of 9% of the past week when retailers made the negotiations between Ukraine and Russia. However, the hopes for a quick solution to the Ukraine secretary and a potential restoration of Russian gas flows remain weak.

By Alex Kimani for Oilprice.com

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