Natural Gas at nine-month low, EIA expects recovery in prices amid flat US production

Natural Gas futures plummeted around 5% in last session but cut losses today. It currently trades up 0.25% at $2.81 per mmbtu. Prices are holding around nine-month low. The Energy Information Administration or EIA has stated that it expects the Henry Hub natural gas spot price will rise from an average of $3.20 per million British thermal units (MMBtu) in July to $3.90/MMBtu in 4Q25 and $4.30/MMBtu next year. Rising natural gas prices reflect relatively flat natural gas production amid an increase in US liquefied natural gas exports. US natural gas prices have been lower this year than EIA forecast earlier this year as high volumes of natural gas has been put into storage so far this injection season (April?October). Although EIA expects natural gas prices to be generally lower than it were forecasting a few months ago, it still expects prices to rise from current levels, driven by tighter market balances. Rising natural gas production in recent months has added to higher-than-anticipated inventory levels. EIA said that marketed natural gas production is likely to grow by 3% over 2024 volumes, supported by growth of 2 Bcf/d in the Permian region and 0.9 Bcf/d in each of the Haynesville and Appalachia regions in 2025.

Powered by Commodity Insights