NatGas Price On The Rise

Natural gas prices in 2017 and 2018 are expected to be higher than last year

Tim Hess, January 23, 2017 (U.S. Energy Information Administration)

“…[The Henry Hub natural gas spot price will] 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, [according to the U.S. Energy Information Administration (EIA)]…Higher prices in 2017 and 2018 reflect natural gas consumption and exports exceeding supply and imports, leading to lower average inventory levels…In 2016, the annual average Henry Hub natural gas price was the lowest since 1999 as a result of a very mild winter that left natural gas inventories at a record high for the end of March…However, high natural gas use for electricity generation during the summer and declining production contributed to Henry Hub natural gas prices rising from an average of $2.00/MMBtu in the first quarter of 2016 to an average of $2.88/MMBtu in the third quarter of 2016. Cold weather across much of the northern United States in mid-December led to an increase in demand for space heating (much of which is provided by natural gas)…[and] spot prices increased to a monthly average of $3.59/MMBtu in December…In 2017, Henry Hub prices are expected to remain near the levels in December 2016…” click here for more

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