Another Push Higher for Natural Gas Futures — MidDay Market Snapshot
The rally continued for natural gas futures through midday Thursday as a leaner-than-expected weekly inventory injection kept bulls on the offensive.
The rally continued for natural gas futures through midday Thursday as a leaner-than-expected weekly inventory injection kept bulls on the offensive.
Spot natural gas prices for Wednesday flow at Waha and nearby delivery hubs in West Texas fell into negative territory as pipeline maintenance prevented some gas from leaving the basin and mild, spring-like weather reduced demand.
Natural gas futures moved lower ahead of the December contract rolling off at the end of trading Tuesday, weighed down by weather forecasts doubling down on a bearishly warm early December and gas production holding near all-time highs.
Production of associated natural gas – fuel produced in concert with oil – surged in the prolific Permian Basin over the past five years, supporting strong total supplies and, for much of this year, helping to keep U.S. prices in check.
Permian Basin pure-play Kinetik Holdings Inc., whose midstream operations transport natural gas to Gulf Coast markets and beyond, set a processing record in the second quarter, even as high temperatures stalled some exploration and production (E&P) customer operations.
Kinder Morgan Inc. is seeking shipper commitments for 100 MMcf/d of incremental capacity on its planned Permian Highway Project (PHP) after fourth quarter 2018 natural gas transport volumes grew 15% year/year.