Permian Natural Gas Prices Rise Amidst Pipeline Relief
US natural gas prices at the Waha Hub in West Texas have been stuck below zero for a record 78 days, but rose to their highest level since early February at minus 46 cents per million British thermal units (mmBtu) on Thursday.
The increase is due to rising demand as summer approaches and pipeline companies complete spring maintenance. The Permian Shale region's natural gas output has been constrained by pipeline limitations, leading to negative prices that have prompted some energy firms to reduce production.
Analysts expect Permian output to rise every month from July to December as new pipes enter service and oil prices surge due to the Iran war.
The Waha Hub's spot price averaged a record-low $2.38 per mmBtu in 2026, up from $1.15 in 2025 and $2.88 over the past five years (2021-2025).