US natural gas inventories are 16.4% more than their five-year average. High natural gas inventories could keep a lid on US natural gas prices. For more on US natural gas prices, read Part 2 of the series. Seasonal weather conditions would have a short-term impact on natural gas prices due to the change in the demand for natural gas. For more on weather, read Part 1 of this series.
US natural gas price forecast
In its July report, World Bank forecast that US natural gas prices will average $2.30 per MMBtu (million British thermal units) in 2016, $3.00 per MMBtu in 2017, and $3.50 per MMBtu in 2018.
JJ Woods Associates estimates that US natural gas could go as high as $3.05 per MMBtu before the end of the summer. Summer is expected to end in the next four weeks. The Price Futures Group estimated that $3 per MMBtu might be the upper limit for US natural gas prices in 2016.
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