Commodities Buzz: EIA Expects Henry Hub Natural Gas Prices To Average Around $9 Per MMBTU In 4Q22

8 Sep 2022 , 12:35 PM

The EIA noted in a latest update that in August, the Henry Hub spot price averaged $8.80 per million British thermal units (MMBtu), up from $7.28/MMBtu in July. Natural gas prices rose in August because of continued strong demand for natural gas in the electric power sector, which has kept natural gas inventories below their five-year (2017-2021) average. EIA expects the Henry Hub price to average about $9/MMBtu in 4Q22 and then fall to an average of about $6/MMBtu in 2023 as U.S. natural gas production rises. The U.S. natural gas inventories ended August at 2.7 trillion cubic feet (Tcf), which was 12% below the five-year average. It forecast that inventories will end the injection season (April through October) at more than 3.4 Tcf, which would be 7% below the five-year average. Dry natural gas production has been rising relatively steadily since 1Q22, when it averaged 94.6 Bcf/d. The U.S. dry natural gas production is set to average 99.0 Bcf/d in 4Q22 and then rise to 100.4 Bcf/d for 2023.Powered by Commodity Insights