US Natural Gas Prices Jump More than 6%
Natural gas prices in the US extended gains for a third session to $6.3/MMBtu on Friday, moving further away from a five-month low of $5.3 hit on December 6th, prompted by forecasts of cold weather from next week.
Still, prices remain unusually subdued for this time of the year, down nearly 10% this month, as milder weather in most of October and November delayed the winter heating season while record levels of production added to the bearish sentiment.
EIA reported that US production of dry natural gas used mostly in homes and business for heating, cooking and electricity, is set to break an annual record 98.0 Bcf/d in 2022 and to average between 100 Bcf/d and 101 Bcf/d in 2023, amid more pipeline infrastructure expansion projects in the second half of the year.
EIA sees natural gas prices at the US Henry Hub to average $5.62/MMBtu in the first half of 2023.