Southwest Cooling Triggers $4 Price Plunge for Natural Gas
Natural gas prices took a hit at most US hubs on Friday, as cooler weather swept through the Desert Southwest and shifted heat to the east.
The price drop was particularly pronounced in Arizona, where natural gas cash fell by $4. This decrease was largely due to the cooling trend in the region, which dissipated the late-week price spike that had driven prices higher.
In contrast, Louisiana and Southeast hubs saw an increase in prices as heat shifted eastward, putting upward pressure on these markets.
At a glance, the Southwest cooldown was the primary factor driving down prices at most hubs. The Waha hub, however, saw its price climb back up to $2 after previously experiencing some volatility. Additionally, Transco restored full capacity on its CS 160 pipeline, which should help stabilize prices in the region.