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Natural gas at the Waha Hub in the Permian basin fell into negative prices earlier in 2019 and will stay weak until new pipelines open. Rising gas-to-oil ratios could force well shut-ins that briefly lift prices, while LNG prices in Asia have crashed as new export supply comes online.
Weak Permian gas and falling LNG prices point to cheap gas feedstock for US and global fertilizer and power production. Any shut-in-driven rebound would be brief and small for feed-ingredient costs.
oilprice.comEditorial DeptApr 26, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
