The Henry Hub natural gas spot price averaged $3.92/MMBtu in September, a slight increase from August, the U.S. EIA said in its Short-Term Energy Outlook.
EIA expects spot prices to remain below $4.00/MMBtu through November, before rising with winter heating demand. Projected Henry Hub natural gas prices average $4.45/MMBtu in 2014 and $3.84/MMBtu in 2015.
Natural gas futures prices for January 2015 delivery (for the five-day period ending October 2) averaged $4.19/MMBtu.
Current options and futures prices imply that market participants place the lower and upper bounds for the 95% confidence interval for December 2014 contracts at $2.96/MMBtu and $5.94/MMBtu, according to EIA.
At this time last year, the natural gas futures contract for January 2014 averaged $3.83/MMBtu and the corresponding lower and upper limits of the 95% confidence interval were $2.91/MMBtu and $5.04/MMBtu.
Press Release, October 8, 2014; Image: EIA