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Daily Prices

8/30/24

September Natural Gas Bidweek Prices Drop as Permian Baseload Prices Flip Negative Again

By Chris Newman

on
Published in: Bidweek Alert Filed under:

Baseload natural gas prices declined on the first day of September bidweek trading on Monday, led lower by prices in West Texas sinking below zero.

NGI's Waha bidweek natural gas price chart

NGI’s Bidweek Alert (BWA) showed prices weakening across most regions in anticipation of lower demand for gas during the milder autumn season. Forecasts for the 16- to 25-day period favored “very nice temperatures” over the northern half of the country keeping national demand at a moderate level, NatGasWeather said.

Fixed price trades for Waha in West Texas sank below zero for the first time since May as the startup of a major pipeline was not expected to be in time to relieve a supply glut. The Permian Basin benchmark traded as low as negative $1.450 and as high as 90.0 cents, averaging at negative $1.030/MMBtu on day 1 of September Bidweek trading. The hub averaged at 22.5 cents for August bidweek.

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Chris Newman

Chris Newman joined NGI in October 2023. He worked 18 years at Argus Media, starting in 2004 in Washington, D.C., where he covered U.S. thermal/coking coal markets and rail transportation. In 2014, he moved to Singapore to help lead Argus’ coverage of steel and its raw material feedstocks. A graduate of the University of Virginia, Chris returned to his native Virginia in 2021.