Commodities Buzz: EIA Expects Natural Gas To Average Just Under $3 In 2018

The US Energy Information Administration (EIA) yesterday raised by 1.17 Bcf/d to 87.35 Bcf/d its second-quarter natural gas marketed production estimate for the US. EIA, in its June Short-Term Energy Outlook, also raised its Q3 marketed production forecast by 1.09 Bcf/d to 88.22 Bcf/d. The agency raised its natural gas consumption estimates by 0.83 Bcf/d to 69.95 Bcf/d for Q2, and by 0.36 Bcf/d to 69.54 Bcf/d for Q3. EIA trimmed its forecast for Q2 Henry Hub natural gas spot prices 1 cent to $ 2.84/MMBtu. The Q3 forecast was also cut 1 cent from the previous month to $ 3.01/MMBtu. The agency expects Henry Hub natural gas prices to average $ 2.99/MMBtu for the full year and $ 3.08/MMBtu in 2019.