Commodities Buzz: EIA expects a pick up in Natural gas prices over coming months

The US Energy Information Administration or EIA has stated in its Short Term Energy Outlook for December that Natural gas inventories in its forecast remain above the five-year average (2019?2023) throughout the winter heating season (November?March) after ending the injection season 6% above the five-year average in mid-November. It expects natural gas inventories to total 1,920 billion cubic feet (Bcf) at the end of March 2025, which would be 2% more than the five-year average. EIA noted that based on expectation that the storage surplus to the five-year average will narrow over the winter, it forecast the U.S. benchmark Henry Hub spot price will increase from an average of just over $2.00 per million British thermal units (MMBtu) in November to an average of about $3.00/MMBtu for the rest of the winter heating season.

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