Natural gas prices forecast to rise
Jun 26, 2008 10:23 AM
High oil prices, low liquefied gas (LNG) imports, consumption growth, and a year-over-year decline in working inventories of 326 billion cubic feet have all contributed to the recent strength in spot prices, according to the monthly report from the Department of Energy.
These conditions are expected to continue and keep pressure on natural gas prices. On an annual basis, the Henry Hub spot price is expected to average a little over $11 per thousand cubic feet in 2008 and in 2009, an average increase of about $1.35 per thousand cubic feet from last month’s forecast.
