Steeper West Texas Gas Discounts Are Outlier of Energy Markets

Since the US-Israel attacks against Iran broke out just over a month ago, most global energy markets have rallied on concerns over supply disruptions. But in West Texas, natural gas prices are dirt cheap — and now look set to stay lower for longer.

Plentiful supplies means that prices in the Permian Basin — home to roughly a quarter of US gas production — have collapsed, trading below zero most of this year already. Now there are signs that the price dislocations will likely continue into next year and the following one.