The extensive oil production declines amid the coronavirus pandemic’s fallout cut deep enough into associated gas supplies to likely help drive up Henry Hub natural gas prices in 2021, according to Raymond James & Associates.

Henry Hub prompt Oct 14

“The 2020 oil crash is still likely to drive a massive imbalance in U.S. gas supplies in 2021,” Raymond James analysts said in a report Monday. “U.S. gas prices will still average around $2 this year but exit 2021 around $4.”

Oil prices plummeted into negative territory earlier this year amid the economic malaise and demand destruction imposed by the coronavirus pandemic. Steep exploration and production (E&P) spending cuts followed and curbed associated gas supplies. Production levels are expected to remain low relative to pre-pandemic levels...