North America gas weekly update: pigs get stuck

Pigs get stuck in wild markets. • A stuck “pig” during Gulf Coast Express pipeline maintenance might have limiting an undisclosed volume of gas takeaway capacity out of the Permian basin resulting in the largest negative Waha gas intraday low of -$10/mmbtu. • Holders of the expiring May WTI oil contract were caught holding “paper” barrels with nowhere to go as they convert to physical barrels resulted in a historic first negative daily WTI contract settlement at -$37.63/bbl. Exports are showing signs of weakness as US gas production has stayed stubbornly high. Despite large coronavirus demand losses continuing, the market has shifted its attention again to significantly low oil prices and the prospects of oil production shut-ins that would create a more immediate lowering of associated gas production compared to time lagged structural declines.