Rising demand for natural gas heading into winter months, combined with reduced production, is likely to put upward pressure on prices, lifting the total 2020 Henry Hub spot price average to $2.03/MMBtu, with 2021 expected to average $3.14/MMBtu, according to the Energy Information Administration (EIA).

That 2020 estimate, which is included in a Short-Term Energy Outlook (STEO) released by EIA Tuesday, is a dime higher than the agency forecast in its previous STEO. Likewise, the 2021 estimate is up four cents from the previous STEO. 

But the report came with a note of caution to industry observers.

“The August STEO remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to the 2019 novel coronavirus disease (Covid-19) continue to...