3/10/2023 0 Comments Vicinity energyAfter record-setting demand for power generation this past summer, seasonal demand is set to reduce in the next few months. So even though there seem to be some price increases in our future, the hope is that the new year could start to bring some stabilization. The October NYMEX Henry Hub contract settled at $6.868/MMBtu, and the expectation is that the Henry Hub price will average about $5.76/MMBtu in November through December of 2022 and then fall to an average of about $5.18/MMBtu in 2023 as U.S. September’s Henry Hub spot price settlement was $7.99/MMBtu versus $5.024/MMBtu seen during the same period last year. Energy Information Administration, the Henry Hub natural gas spot price averaged $8.80 per million British thermal units (MMBtu) in August, up from $7.28/MMBtu in July. By the numbers: what we know and what we could expectĪccording to the U.S. While we have recently seen some modest dips in gas prices, Vicinity is still seeing record highs in many of the cities we serve. This leaves the market with less of a buffer going into peak winter heating season demand, providing potential upside price risk. With the ongoing war in the Ukraine and uncertainty in Europe, an increase in liquefied natural gas (LNG) exports, and warmer-than-average summer temperatures in much of the U.S., natural gas inventories are below historical averages. Put differently, today’s gas prices have skyrocketed to levels unseen since 2008-and several factors could continue to drive prices even higher. economy, natural gas prices have been up a staggering 525%. Since June 2020, when COVID-19 shut down much of the U.S.
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