West Texas Natural Gas Prices Remain Unusually Low Amid Abundant Supplies

Despite global energy market concerns over supply disruptions, West Texas natural gas prices have plummeted due to oversupply. Prices in the Permian Basin, a major US production hub, have traded below zero for much of the year.

• West Texas natural gas prices have traded below zero for much of the year.
• The Permian Basin accounts for about a quarter of U.S. gas production.
• Price dislocations in the region are expected to continue into the next year.
• Flaring has increased due to oversupply and limited infrastructure.
• The situation underscores the localized nature of energy markets.