US natural gas inventories and weather
US natural gas inventories are 1% less than the five-year average. Falling natural gas inventories will support natural gas (FCG) (UGAZ) (DGAZ) (UNG) (BOIL) prices. For more on inventories, read Part 3 and Part 4 of this series.
Expectations of a cold winter could support natural gas prices in the short term. For more on natural gas prices and the weather, read Part 2 of this series.
Changes in natural gas prices can impact oil and gas producers’ earnings such as WPX Energy (WPX), Newfield Exploration (NFX), Gulfport Energy (GPOR), Southwestern Energy (SWN), and Rex Energy (REXX).
US natural gas price forecasts
Aegent Energy Advisors estimates that US natural gas prices won’t exceed $4.1 per MMBtu this winter. It thinks that US natural gas prices won’t exceed $3.6 per MMBtu between April 2017 and October 2017.
The EIA (U.S. Energy Information Administration) estimates that US natural gas prices could average $3.55 per MMBtu (million British thermal units) in 2017 and $3.73 per MMBtu in 2018. US natural gas prices averaged $2.51 per MMBtu in 2016 and $2.63 per MMBtu in 2015.
Meanwhile, President Trump’s proposed energy policy could impact natural gas prices. Read How Could Donald Trump Impact the US Energy Market? to learn more.
The World Bank forecast that US natural gas prices will average $3 per MMBtu in 2017 and $3.50 per MMBtu in 2018.
The International Monetary Fund forecast that US natural gas prices will average $3 per MMBtu in 2017, $3.10 per MMBtu in 2018, and $3.30 per MMBtu in 2019.
Read What Can Investors Expect from the Natural Gas Market in 2017? for more on the natural gas market outlook in 2017.
For analysis on crude oil prices, read What Can Investors Expect in the Crude Oil Market in 2017? and US Election: How Will It Impact the Stock and Energy Markets.
For energy-related analysis, visit Market Realist’s Energy and Power page.