The U.S. Energy Information Administration has 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 $3.06 per million British thermal units in 2017 and $3.29/MMBtu in 2018.
The 2017 estimate is down 10 cent while the forecast for 2018 is lower 12 cents as compared to forecasts in EIA’s June short-term outlook.
In July, the average Henry Hub spot price was $2.98/MMBtu, about the same as in June.
U.S. dry natural gas production is expected to average 73.5 billion cubic feet per day (Bcf/d) in 2017, a 1.2 Bcf/d increase from the 2016 level and a o.2 Bcf/d rise from the last STEO.
Natural gas production in 2018 is expected to be 3.9 Bcf/d above the 2017 level, EIA said.