The U.S. Energy Information Administration (EIA) is slashing its projected 2024 average Henry Hub natural gas spot price by 14% versus its month-earlier forecast after observing record lows for the benchmark in February, the agency said Tuesday.

EIA, in its latest Short-Term Energy Outlook (STEO), modeled an average Henry Hub price of $2.27/MMBtu for 2024, with prices expected to then climb to $2.94 on average for 2025.

Henry Hub averaged just $1.72 in February, a record low when adjusting for inflation, the agency said.

Unsurprisingly for those that closely follow natural gas markets, EIA found that heating degree days have thus far lagged historical norms this winter, totaling 8% below the 10-year average.

Residential/commercial demand this winter is poised to come in...