Bidweek Markets Fall Into Spring;Permian Sees Negative Pricing

摘要

Negative daily pricing in the Permian Basin spilled into April bid-week trading in an unprecedented move for the month-ahead gas market.The monthly average at the Waha Hub was just 100 per million Btu,970 lower than last month,with bidweek deals there seen as low as minus 250.El Paso Permian with an average of 640/MMBtu,and Transwestern east of Thoreau with an average of a nickel,each saw low monthly trades of negative 100.The negative pricing-in which sellers effectively pay buyers to take excess gas off their hands-might seem in order as the region saw historically low prices in day-ahead cash trading last week.However,that was tied largely to compressor maintenance that should be resolved soon.What it foreshadows is a deepening oversupply in the Permian that could overwhelm takeaway capacity this month,at least until Kinder Morgan starts service on its 2 billion cubic feet per day Gulf Coast Express pipeline in October(NGW Dec.10' 18).