Henry Hub Natural Gas Prices Fall Despite Record Heat
The Henry Hub natural gas spot price for this summer has fallen by 6% compared to last year's numbers, despite record-breaking heat. According to the U.S. Energy Information Administration (EIA), prices averaged $2.93 per million British thermal units between June and August. The agency attributes this decrease in part to greater renewable electricity generation, which lowered demand for natural gas during peak load hours.
July saw an average temperature of 77 degrees Fahrenheit across the Lower 48 states, the highest ever recorded for that month, according to data from the National Oceanic and Atmospheric Administration. However, a number of factors limited upward pressure on prices, including record natural gas production and plentiful storage inventories.
The agency projects that dry natural gas production will reach a record 111.2 billion cubic feet per day in 2026. Working natural gas inventories began the injection season at 1,906 billion cubic feet, 4% above the prior five-year average, with injections exceeding their respective averages in every month of the injection season through August.