Headings for gas prices in the U.S.

The latest forecast by the U.S. Energy Information Administration (EIA) shows that in 2022 the spot price of Henry Hub gas will average $6.48 per million British thermal units (MMBtu), and in 2023 it will be $5.43 per MMBtu.

The gas price is expected to jump to $6.17 in the first quarter of the next year, and in the second quarter it is expected to drop to $5. In the third quarter of 2023, a slight increase is expected to $5.18 and in the fourth quarter to $5.35.

The EIA report states expectations for higher demand of natural gas in winter and an increase in LNG exports. As a result, natural gas prices are expected to rise, compared to November levels.

The EIA added that it expects a decline of natural gas prices in January due to U.S. inventories approaching the previous 5-year average. The main reason is the increase in U.S. natural gas production.

The EIA warned of remaining high volatility in prices.

On January 4, the gas price was $3.71 per MMBtu, which was the lowest level for 2022. On August 22, the gas price was $9.68 per MMBtu, which was the highest for 2022.