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.