Permian cash rally signals possible end to autumn price pain for producers

摘要

The Permian gas market turned bullish Oct. 21 as easing maintenance restrictions and colder weather drove a rally in Waha cash prices, supporting recent upward momentum in winter forwards. In mid-session trading, cash prices at multiple West Texas hubs were sharply higher. At Waha, the spot market was up about 70 cents to 88 cents/MMBtu. At El Paso Permian, prices climbed more than 50 cents from the prior-day settlement to 91 cents/MMBtu, preliminary settlement data from S&P Global Platts showed. Rallying prices in the Permian Basin come as an unplanned emergency maintenance on Transwestern Pipeline's San Juan lateral was scheduled to end. From Oct. 20 to Oct. 21, a zero-flow restriction through the pipeline's La Plata Compressor Station cut capacity on the lateral from 500 MMcf/d.