uploads///Henry Hub Natural Gas Spot Price

Natural Gas Outlook for Nitrogen Fertilizers


Apr. 18 2018, Updated 3:05 p.m. ET

Natural gas prices

Natural gas prices, which are key to US nitrogen fertilizer producers (MOO), were broadly lower during the week of April 4 to April 11, 2018, as reported by the EIA (U.S. Energy Information Administration).

Article continues below advertisement

Weekly movement

Natural gas prices at Henry Hub, where natural gas is heavily traded in the United States, fell as much as 3% week-over-week to $2.69 per MMBtu (million British thermal units) on April 11 from $2.77 per MMBtu on April 4.

In the chart above, we see that in recent weeks, natural gas prices have remained lower compared to the previous year’s levels and have remained positive for CF Industries (CF), Nutrien (NTR) (AGU), and CVR Partners (UAN).

Natural gas price outlook

Last week, the EIA issued its latest Short-Term Energy Outlook Report on April 10, outlining the price outlook for natural gas in the rest of 2018 and 2019. The EIA expects the natural gas price to average $2.99 per MMBtu in 2018 and $3.07 per MMBtu in 2019.

By comparing the 2018 price outlook with the current level, we can see that natural gas prices appear to be heading north for the remainder of the year according to the estimates. In the next year, natural gas prices at Henry Hub are expected to rise even further from their current levels.

Next, we’ll discuss last week’s price movements for phosphate fertilizers.


More From Market Realist

  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • U.S. Steel EAF
    Basic Materials
    U.S. Steel or Cleveland-Cliffs: Which Is the Best Steel Stock to Buy?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.