Natural gas prices in West Texas turn negative, suppliers forced to burn excess production

Golden Ten Data reported on March 23 that the Waha natural gas trading hub in the Permian Basin in West Texas produces about a quarter of the United States' natural gas output. Last week, its spot natural gas price once dropped to -$9.75 per million BTU. The US-Iran conflict has led local drilling companies to increase oil production, resulting in a rise in natural gas output as well. However, due to limited infrastructure, there has been a localized surplus of natural gas, forcing producers to burn off excess capacity.