The U.S. Energy Information Administration (EIA) is cutting its projected average Henry Hub natural gas spot price to $2.20/MMBtu for 2024, down 5.2% from the $2.30 average price the agency modeled a month earlier.

In the April release of its Short-Term Energy Outlook (STEO), published Tuesday, EIA said it expects spot prices at the national benchmark to average less than $2 during the second quarter. The anticipated price weakness reflects high storage inventories exiting the 2023-24 winter, according to EIA.

After starting off the year at $2.560, NGI’s Henry Hub next-day natural gas cash price dropped to $1.435 by March 31, the end of the traditional storage withdrawal season. Prices have since recovered some ground, but remain sharply below year-ago levels around $2,...