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).
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...