The nation’s heat wave just sent natural gas prices into a negative zone in Texas as they fell below zero for the first time since May. It means there was an unexpected demand for natural gas to keep electricity produced.
According to Reuters, pipe maintenance trapped gas in the Permian Shale even as demand for natural gas increased due to the nation’s heat wave where consumers cranked up their air conditioners. What’s odd is that negative prices normally occur in the spring and autumn when there is low demand for heating and cooling. But the heat wave means there is an increased need for natural gas to power electricity to keep air conditioners operating in homes and businesses.
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