BMI cuts 2025 Henry Hub price forecast to $3.2 per MMBtu

Analysts at BMI announced on Thursday, May 1, that they have revised their annual average Henry Hub price forecast for 2025, lowering it by 5.9% to $3.2 per million British thermal units (MMBtu). This is down from their previous estimate of $3.4 per MMBtu made in February. 

Year-to-date, US natural gas prices have fallen 21.7%, as a surge in fuel production outpaced demand, which was weakened by an early end to the heating season. By mid-March, natural gas inventories in America were several weeks ahead of historical averages. 

Therefore, Henry Hub prices have seen a significant drop, falling 28% to $2.95 per MMBtu.

In contrast, a Bloomberg consensus forecast predicts gas to average $3.7 per MMBtu in 2025. 

Standard Chartered anticipates a near-term fuel average of $3.35 per MMBtu, while JPMorgan projects it to be $3.80 per MMBtu.

The EIA, on the other hand, forecasts the Henry Hub price to stand at $4.27 per MMBtu.