The U.S. natural gas market is predicted to be oversupplied this year from a warmer-than-normal start to the year and declining demand, which are likely to suppress prices into 2024.

Henry Hub Prices

Energy analysts trimming their domestic natural gas price forecasts include BMO Capital Markets, Goldman Sachs Commodity Markets, Jefferies and Tudor, Pickering, Holt & Co. (TPH).  

“For Henry Hub, we are lowering our 2023 estimate to $3.10/MMBtu from $3.60 and our 2024 assumption falls to $3.70 from prior forecast of $4.50,” BMO Capital Markets analysts said.

The analyst team led by Randy Ollenberger noted that domestic natural gas prices have slumped since the start of the year. The analysts pointed to lower international gas prices, the delayed restart of Freeport LNG and the warm...