Henry Hub spot natural gas prices, on track to rise 19% month/month to average near $2.60/MMBtu in July, should continue to climb through the rest of 2023 amid strong power demand and flat production, according to updated modeling from the U.S. Energy Information Administration (EIA).

Flat domestic production and a year/year increase in natural gas consumption should put upward pressure on prices, EIA said in its latest Short-Term Energy Outlook (STEO), published Tuesday.

Lower 48 storage exited the month of June at 2,900 Bcf, or 14% above the five-year average, the agency said. The latest STEO modeled an end-October storage level 7% above the prior five-year average.

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