Following surging natural gas prices in July, the Energy Information Administration (EIA) tacked on 20 cents to its expected 2021 average Henry Hub spot price in updated projections published Tuesday.

In the latest edition of its Short-Term Energy Outlook (STEO), the agency said it now expects Henry Hub spot prices to average $3.42/MMBtu for all of 2021, up from $3.21 predicted a month earlier. The updated EIA forecast includes an average Henry Hub price of $3.71 for the third quarter.

EIA is raising its expectations for the national benchmark after prices soared to an average $3.84 in July, a nearly 60-cent month/month increase from the June average of $3.26. The agency modeled domestic consumption of 75.8 Bcf/d in July, up 3.9 Bcf/d month/month, attributable to higher demand...