As lagging storage inventories and robust demand pressure prices higher, Henry Hub natural gas spot prices will average $8.69/MMBtu in the third quarter, updated Energy Information Administration (EIA) projections show.

natural gas price forecast

Amid rising domestic production by next year, the national benchmark price should retreat to $4.74 in 2023, the agency said in the June edition of its Short-Term Energy Outlook (STEO), published Tuesday.

Last month, EIA modeled an average Henry Hub price of $8.59 for the second half of 2022, illustrating the extent to which the domestic natural gas market has entered a period of sustained elevated pricing. What’s more, with the New York Mercantile Exchange futures trading above $9 through February 2023 as of Tuesday, EIA’s projections might be on the...