GIA South contract moves higher as Southeast supply-demand fundamentals tighten

摘要

The Platts ICE Gas Indices Americas South contract averaged $2.33/ MMBtu for the week ended Oct. 30, jumping $1.07 on the week, as a drop in offshore production ahead of Hurricane Zeta, coupled with cooler temperatures in the region lifted heating demand. A major factor in the GIA South contract’s week-on-week gain was weather-related strengthening at Waha Hub, which catches Permian Basin pricing dynamics, and currently comprises of 27.13% of the regional contract’s weighting. On Oct. 28, Waha Hub gained 15 cents, nearing $3/MMBtu to settle at $2.905/MMBtu for next-day flows, in a third consecutive trade day of upward movement from settling at negative 82 cents/MMBtu on Oct. 23. This was the second time Waha Hub has closed above $2 this year.