Natural Gas Futures Slide on New Permian Capacity, Softer Shoulder-Season Demand
Key Takeaways
- •Natural gas futures declined around midday Tuesday amid pressure from new Permian Basin takeaway capacity and softer seasonal demand expectations.
- •Waha cash prices increased as additional pipeline egress continued to ease West Texas transportation constraints.
- •The market reflected a split between stronger regional pricing at Waha and weaker broader futures trading.
- •October natural gas futures fell by more than 4 cents.
- •Waha cash gained nearly 19 cents.
Natural gas futures fell around midday Tuesday as new Permian Basin takeaway capacity weighed on a market already looking toward softer shoulder-season demand. Waha cash, however, strengthened as additional egress continued to ease West Texas takeaway constraints.
The moves highlight a familiar split in the U.S. gas market: regional pricing at the Waha hub can improve when pipeline capacity expands, even as the broader futures market remains focused on whether demand will soften after the summer cooling season and before winter heating demand typically picks up. In that setting, nearby futures can remain sensitive to both physical flow changes in the Permian and the broader balance of supply and demand across the country.
Here’s the latest:
- October futures fell more than 4 cents.
- Waha cash gained nearly 19 cents.
Related Tags
Henry Hub
LNG
Waha
natural gas prices
natural gas production
Jodi Shafto
Jodi Shafto joined NGI as a Senior Natural Gas Reporter in October 2023. Before that, she was a business news reporter for South Carolina's largest daily newspaper, The Post and Courier, and was a Senior Energy Markets Reporter at S&P Global Market Intelligence. Based in Charleston, Shafto has covered U.S. energy markets since 2005 as a reporter, editor and analyst. A New Jersey native, she holds a BS in Journalism from Bowling Green State University.
