henry hub prices

While volatile in 2020, natural gas prices are poised to settle into a price range of $2.00-3.00/MMBtu and hold there into 2021, Moody’s Investor Service said in a new forecast.

The credit ratings analyst said shut-in oil wells and scaled back associated natural gas volumes amid fallout from the coronavirus pandemic would keep prices higher than they are currently. The October Nymex contract settled at $2.048/MMBtu on Friday.

The demand side of the equation is dependent as usual on weather, but prices would get a boost if liquefied natural gas (LNG) export demand jumps during the coming winter months to fuel heating needs in Asia and Europe, Moody’s analysts said.  

“Two fundamental and competing factors will shape the trajectory of natural gas prices beyond...