Natural Gas Prices In 2017 & 2018 Are Expected To Be Higher Than Last Year According To EIA

According to the U.S. Energy Information Administration on January 23, 2017 --- in its January 2017 Short-Term Energy Outlook (STEO), the agency expects the Henry Hub natural gas spot price to average $3.55 per million British thermal units (MMBtu) in 2017 and $3.73/MMBtu in 2018, both higher than the 2016 average of $2.51/MMBtu. Higher prices in 2017 and 2018 reflect natural gas consumption and exports exceeding supply and imports, leading to lower average inventory levels. The confidence interval range for natural gas prices is a market derived range that reflects trading in New York Mercantile Exchange (NYMEX) futures markets and is not directly based on EIA's supply and demand estimates. The values for the upper confidence interval increase during the winter months compared with the rest of the year, which reflects the higher probability of an increase in natural gas consumption for space heating use as a result of colder weather. By February 2018, the 95% confidence interval ranges from $1.78/MMBtu to $7.22/MMBtu. To get more information on the natural gas prices in 2017 and 2018 expected to be higher than last year according to EIA click on the picture below to learn more.