Commodities Buzz: EIA expects Henry Hub price to average $7.54/MMBtu in the second half of 2022

10 Aug 2022 , 03:25 PM

The US Henry Hub spot price averaged $7.28 per million British thermal units (MMBtu), down from $7.70/MMBtu in June and $8.14/MMBtu in May. Average natural gas prices fell over the last two months primarily because of additional supply in the domestic market following the shutdown of the Freeport LNG export terminal on June 8. However, prices increased by almost 50%, from $5.73/MMBtu on July 1 to $8.37/MMBtu on July 29, because of continued high demand for natural gas from the electric power sector. EIA expects that the Henry Hub price to average $7.54/MMBtu in the second half of 2022 and then fall to an average of $5.10/MMBtu in 2023 amid rising natural gas production. The US natural gas inventories ended July at 2.5 trillion cubic feet (Tcf), which was 12% below the 2017-2021 average. We forecast that natural gas inventories will end the 2022 injection season (end of October) at close to 3.5 Tcf, which would be 6% below the five-year average. Powered by Commodity Insights