With storage levels expected to lag behind the five-year average this summer, Henry Hub natural gas spot prices will soar to $8.59/MMBtu on average in the second half of this year, according to updated forecasting from the Energy Information Administration (EIA).

US natural gas prices

Henry Hub prices are forecast to average $7.83 for the second quarter after averaging $6.59 for April, EIA said in the May edition of its Short-Term Energy Outlook, published Tuesday. The April 2022 Henry Hub average represented a whopping $4.90 increase over the April 2021 average of $2.66, the agency said.

“High forecast natural gas prices reflect our expectation that natural gas storage levels will remain less than the five-year average this summer,” researchers said. 

Stockpiles should lag recent historical...