Permian Takeaway Capacity Weighs on Natural Gas Futures

Natural gas futures fell significantly on Tuesday as the market weighed the impact of new Permian Basin takeaway capacity.

The decline in prices came as the market looks ahead to softer shoulder-season demand, which is typically lower than peak winter or summer periods.

New Permian Basin takeaway capacity has eased West Texas takeaway constraints, with Waha cash strengthening by nearly 19 cents. However, this additional egress weighed on natural gas futures, causing them to fall more than 4 cents in October.