Natural gas prices
After recent peaks, natural gas prices have fallen back to normal levels. Recently, natural gas prices have been high on the back of severe winter conditions in North America.
Between February 7 and February 14, the prices of natural gas fell from $2.73 per MMBtu (million British thermal units) to $2.51 per MMBtu. The decline in prices came as a result of warmer weather, especially in the Northeast region of the US, according to the EIA (Energy Information Administration). Lower Henry Hub natural gas prices are favorable for companies (XLB) such as Nutrien (NTR), CF Industries (CF), Terra Nitrogen (TNH), and CVR Partners (UAN), which use natural gas to produce nitrogen fertilizers.
Natural gas price outlook
In its recent short-term energy outlook report, the EIA predicted natural gas prices at Henry Hub would average $3.34 per MMBtu. The EIA expects prices to average $3.2 per MMBtu in 2018 and $3.08 per MMBtu in 2019. Bear in mind that energy prices are highly volatile and these are forecasts are subject to change.
Next, we’ll discuss DAP fertilizer prices.