Henry

U.S. dry natural gas production should average 73.5 Bcf/d this year, up 1.2 Bcf/d from 2016, while domestic exports to overseas markets should continue to strengthen, the Energy Information Administration (EIA) said Tuesday.

Henry Hub natural gas spot prices will average $3.17/MMBtu this year, and new export capabilities, combined with growing domestic consumption, will help drive prices even higher, to $3.43/MMBtu next year, according to the Energy Information Administration’s (EIA) latestShort-Term Energy Outlook (STEO).

Physical natural gas traded for Thursday delivery was a split ticket Wednesday, as sharp weather-driven increases at eastern points were able to easily offset softer Midcontinent, Rockies and California prices.

The rapid growth of liquefied natural gas (LNG) supply coming online over the next few years will lead to a global convergence of natural gas pricing “centered around the U.S. market and Henry Hub,” according to Goldman, Sachs & Co. Senior Commodities Analyst Christian Lelong.

Physical gas for Friday delivery slipped in Thursday’s trading as traders for the most part elected to get deals done before the 10:30 a.m. EDT release of government inventory data.

Physical gas for Friday delivery slipped in Thursday’s trading as traders for the most part elected to get deals done before the 10:30 a.m. EDT release of government inventory data.

There may be light at the end of the tunnel for slumping natural gas prices, according to the Energy Information Administration (EIA), which said Monday it expects the benchmark Henry Hub to average $2.65/MMBtu in 2016 and $3.22/MMBtu in 2017.

There may be light at the end of the tunnel for slumping natural gas prices, according to the Energy Information Administration (EIA), which said Monday it expects the benchmark Henry Hub to average $2.65/MMBtu in 2016 and $3.22/MMBtu in 2017.

In what might be a sign of things to come, natural gas futures moved higher, in spite of weekly physical natural gas prices continuing lower. The NGI Weekly Spot Gas Average fell 11 cents to $1.60, but January futures jumped over 25 cents.