OPEC-plus, the consortium of major oil producers led by Saudi Arabia, agreed to a substantial production cut late last week that could bolster prices and fuel more demand for Permian Basin crude. This, by extension, could drive continued lofty levels of associated natural gas from the prolific basin.

Associated gas, produced alongside oil, contributed to record levels of U.S. natural gas output in 2023 and stout supplies in storage. Production eclipsed 106 Bcf/d in November estimates from Wood Mackenzie and Bloomberg – all-time highs and about 3 Bcf/d higher than only two months earlier.

Domestic gas inventories finished November nearly 9% above the five-year average, according to the Energy Information Administration (EIA).

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