EIA Lifted Henry Hub Natural Gas Price Forecasts

SEATTLE (Oil Monster): The U.S. Energy Information Administration (EIA) has revised its Henry Hub natural gas spot price projection for 2024 and 2025 in its newly issued Short Term Energy Outlook (STEO) report.

The Henry Hub spot prices are anticipated to average $2.19 per million British thermal units (MMBtu) in 2024 and $2.95 per MMBtu in 2025, per the December 2024 STEO. Henry Hub spot prices were expected to average $2.17 per MMBtu in 2024 and $2.90 per MMBtu in 2025, according to the November report.

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According to the most recent data, Henry Hub's spot price is expected to average $2.45 per MMBtu in the fourth quarter of this year. It is anticipated that average rates will be $2.95 per MMBtu in Q1 2025 and $2.44 per MMBtu in Q2 2025. Additionally, in the third and fourth quarters of 2025, the rates are anticipated to be $3.02 and $3.40 per MMBtu, respectively.

According to the research, November saw a second consecutive month of falling U.S. natural gas prices, primarily due to the month's first half's continued mild autumnal weather. Over a large portion of the country's eastern region, the cold weather in late November and early December caused spot prices to rise. According to the EIA data, natural gas stockpiles are expected to stay above the five-year average for the duration of the weather season.