EIA cuts 2017 Henry Hub price estimate


Image courtesy of EIA

The U.S. Energy Information Administration has slightly reduced its forecast for Henry Hub natural gas spot prices this year.

In its latest Short-Term Energy Outlook released on Tuesday, the agency said Henry Hub gas prices would average $3.16 per million British thermal units in 2017 and $3.41/MMBtu in 2018.

The 2017 estimate is down 1 cent while the forecast for 2018 is down 2 cents as compared to forecasts in EIA’s April short-term outlook.

In May, the average Henry Hub natural gas spot price was $3.15/MMBtu), 5 cents higher than in April.

U.S. dry natural gas production is forecast to average 73.3 billion cubic feet per day (Bcf/d) in 2017, a 1 Bcf/d increase from the 2016 level, EIA said.

This forecast increase would reverse a 2016 production decline, which was the first annual decline since 2005. Natural gas production in 2018 is forecast to be 3.3 Bcf/d above the 2017 level.

EIA expects natural gas production in 2018 to be 3.3 Bcf/d above the 2017 level.