by Jeff Della Rosa (JDellaRosa@nwabj.com)

U.S. natural gas price projections have been lowered as a warmer-than-average start to 2023 has reduced natural gas consumption to below-average levels, according to the U.S. Energy Information Administration (EIA). The projection reflects a nearly 30% price cut from January expectations.

The EIA released Tuesday (Feb. 7) the February Short-Term Energy Outlook that shows natural gas prices at the Henry Hub are expected to fall by 47% to $3.40 per million British thermal units in 2023 from 2022.

“U.S. natural gas inventories fell by less than our expectations in January because of the warmer-than-average weather,” said EIA Administrator Joe DeCarolis. “With more natural gas in inventory, we reduced our forecast for natural gas prices over the coming year. There is still a lot of uncertainty, including the possibility of extreme weather later this winter that could increase demand and temporarily slow down production, but those possibilities decrease as we approach spring.”

https://talkbusiness.net/2023/02/eia-slashes-price-forecast-for-natural-gas-amid-warmer-weather/