EIA: Henry Hub Price Outlook Raised 3% in June STEO


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The Energy Information Administration (EIA) raised its 
U.S. natural gas price outlook for 2026 and 2027 in its June Short-Term Energy 
Outlook (STEO), citing stronger demand growth and expanding LNG exports despite 
increasing domestic production.  
The Henry Hub spot price is forecast to average $3.60/MMBtu in 2026, according 
to the June STEO, up about 2.8% from the agency's May forecast of $3.50/MMBtu. 
For 2027, the EIA expects Henry Hub prices to average $3.46/MMBtu, a 9% 
increase from the previous forecast of $3.18/MMBtu.  
The EIA said natural gas prices strengthened in May, with the Henry Hub spot 
price averaging $2.94/MMBtu, up 17cts from April as warmer weather boosted 
electricity demand for cooling heading into the summer season. Daily prices 
moved above $3.00/MMBtu late in the month as power-sector consumption 
increased.  Despite higher demand expectations, the agency said growing natural 
gas production continues to keep inventories well supplied. U.S. marketed 
natural gas production is forecast to increase by 3.3%, or about 3.9 Bcf/d, in 
2026, followed by an additional 2.5% increase in 2027. Much of the growth is 
expected to come from associated gas production in the Permian Basin, where 
higher crude oil prices are supporting increased drilling activity.  
The EIA said ongoing growth in U.S. LNG exports and stronger electricity demand 
are expected to provide support for natural gas prices, particularly in the 
second half of 2027. U.S. LNG gross exports are forecast to average 17 Bcf/d in 
2026 and 19 Bcf/d in 2027, up from 15 Bcf/d in 2025.  
The agency expects the Henry Hub spot price to average approximately 
$3.34/MMBtu during the second half of 2026 and $3.46/MMBtu in 2027, while 
inventories are projected to remain above the five-year average due to 
continued production growth




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