US natural gas inventories are 22.1% higher than their five-year average. High natural gas inventories could pressure natural gas prices. Secondly, seasonal weather conditions would have a short-term impact in natural gas prices.
US natural gas price forecast
The EIA (U.S. Energy Information Administration) released its monthly Short-Term Energy Outlook report on July 12, 2016. It forecasts that US natural gas prices will average $2.43 per MMBtu in 2016 and $3.04 per MMBtu in 2017.
The EIA forecasted that US natural gas prices will average $2.29 per MMBtu in 2016 and $3.05 per MMBtu in 2017 in its June Short-Term Energy Outlook report.
The World Bank forecasts that US natural gas prices will average $2.50 per MMBtu in 2016 and $3.00 per MMBtu in 2017 due to high inventories.
Aegent Energy Advisors estimates that US natural gas prices may not exceed $3.20 per MMBtu in August 2016. They may also not exceed $3.20 per MMBtu from August to October 2016. Prices are expected to trade below $3.61 per MMBtu from November 2016 to March 2017.
For related analysis, you can visit Market Realist’s Energy and Power page.