The Henry Hub natural gas spot price averaged $2.34/MMBtu in October, a decrease of 32 cents/MMBtu from the September price, according to the US Energy Information Administration.
Warm weather at the end of October, strong inventory builds, continuing production growth, and expectations for a warm winter contributed to spot prices falling to three-year lows in recent weeks, the EIA said in its November Short-Term Energy Outlook.
The agency expects monthly average Henry Hub spot prices to remain lower than $3/MMBtu through June 2016, and lower than $3.50/MMBtu through the rest of the forecast.
Henry Hub natural gas prices are projected to average $2.69/MMBtu in 2015 and $3.00/MMBtu in 2016, the agency added in the report.
Image: EIA