Commodities
El Nino Forecast Boosts Natural Gas Price Target
Natural gas prices are expected to rise in January due to El Nino conditions, according to an analysis by FXEmpire. The Henry Hub price for September settled at $2.662 on August 7, while the price for January 2027 settled at $4.027.
The analyst predicts that January natural gas prices will reach $4.50 to $4.75 by October 31, citing NOAA's forecast of an 81% chance of a very strong El Nino from October to December.
This could lead to fewer cold shots in January and a weaker late winter polar vortex, resulting in more frequent disruptions to natural gas supplies.