Commodities Buzz: EIA expects higher natural gas prices in 2025

The Energy Information Administration or EIA stated in a latest monthly update that relatively warm weather in March across much of the United States limited the consumption of natural gas for space heating, leading to less natural gas being withdrawn from storage than EIA had forecast in the March Short Term Energy Outlook (STEO). Despite a net injection into storage during March, U.S working natural gas inventories ended the withdrawal season (November?March) 4% below the five-year average as cold weather in January and February resulted in more natural gas than average being withdrawn from storage. Consequently, it now expects higher natural gas prices this year, with the Henry Hub price averaging around $4.30 per million British thermal units (MMBtu) in 2025, up about $2.10/MMBtu from 2024. EIA expects the annual average price to increase another 30 cents/MMBtu in 2026 to around $4.60/MMBtu.

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