# Oil rebound’s dirty little secret threatens U.S. gas bulls - The Globe and Mail

> Permian Basin drillers are boosting oil output as prices rise, lifting associated natural gas to nearly 7 billion cubic feet a day, about 8% of US supply. US natural gas prices have climbed above $3 per million British thermal units for the first time in 16 months, and a new Apache discovery is expected to add production from mid-2017.

- Date: 2016-10-17 · published 2016-10-17T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/12149-oil-rebound-s-dirty-little-secret-threatens-u-s-gas-bulls-the-globe-and-mail
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Rising associated gas output from the Permian could cap US natural gas rallies by adding supply, which weighs on energy input costs for ethanol and DDGS. Higher crude prices from the same drilling activity can support vegetable oil and biofuel demand.

## Read by commodity

- WTI: bullish ▲
- NATGAS: bearish ▼

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/globe-investor/investment-ideas/oil-rebounds-dirty-little-secret-threatens-us-gas-bulls/article32397516/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.