The U.S. Energy Information Administration has reduced its forecast for Henry Hub natural gas spot prices this year.
In its latest Short-Term Energy Outlook released on Tuesday, the agency said Henry Hub gas prices would average $3.01 per million British thermal units in 2017 and $3.10/MMBtu in 2018.
The 2017 estimate is down 2 cents while the forecast for 2018 is lower 9 cents as compared to forecasts in EIA’s October short-term outlook.
In October, the average Henry Hub natural gas spot price was $2.88/MMBtu, down 10 cents from the September level.
U.S. dry natural gas production was forecast to rise to 73.45 billion cubic feet per day (bcfd) in 2017 from 72.85 bcfd in 2016, EIA said.
The projection was a little lower than EIA’s 73.63-bcfd forecast in October.
The agency also projected natural gas production would rise to 78.90 bcfd in 2018, up from a forecast of 78.49 bcfd released in October.