US Gas Output Set to Push Prices Lower Amid Record Production
The US Energy Information Administration (EIA) has forecasted that record US natural gas production will average 122.5 billion cubic feet per day, leading to lower Henry Hub spot prices even as electricity demand climbs to new highs.
This expected increase in gas output is set to improve the economics of gas-fired power generation. According to the EIA, the lower prices will be driven by the increased supply, which will outpace growing demand for natural gas.