RBC Sees Permian Gas at -$9.60/MMBtu, Signals Industrial Demand Boost
RBC Capital Markets director Chris Louney reported that Permian Basin gas prices plunged to a record -$9.60/MMBtu on April 24, compared with international benchmarks roughly six times higher. He said the resulting industrial gas surplus could spur chemicals and data center demand, potentially boosting RBC’s energy-sector advisory revenues.
1. RBC Analyst Comments on Gas Glut
Chris Louney, director of global commodity strategy at RBC Capital Markets, highlighted that US natural gas prices have remained insulated from international volatility due to abundant domestic supply and upcoming pipeline projects.
2. Record Negative Permian Pricing
Permian Basin gas prices dipped to an unprecedented -$9.60 per million British thermal units on April 24 as output exceeded pipeline capacity, while benchmark futures traded below $3 compared with international prices roughly six times higher.
3. Potential Impact on RBC Revenues
Louney suggested that the industrial gas surplus could drive increased demand from chemical producers and data centers, which may boost RBC’s energy-sector advisory and lending services.