Natural gas prices likely to rise in 2008, 2009
Mar 7, 2008 11:04 AM
Total natural gas consumption is expected to increase by 0.9 percent in 2008 and by 1.0 percent in 2009, the growth being driven by projected colder winter months, on average, according to information from the Department of Energy.
The DOE's short-term energy report also noted that the expectation of continued cold, but near-normal, weather through the remainder of the first quarter this year is projected to keep prices high relative to the first quarter of 2007.
The Henry Hub spot price is expected to average $8.18 per mcf during the first quarter of 2008 compared to $7.41 during the corresponding period in 2007. As heating demand eases, the monthly average spot price at the Henry Hub is expected to decline through August before rising toward a peak again next winter. On an annual basis, the Henry Hub spot price is expected to average about $7.83 per mcf in 2008 and $7.93 per mcf in 2009.
