US EIA expects natural gas prices to remain high through summer
Washington (Platts)--10May2005
Despite a recent softening, gas prices should remain fairly strong, in the range of $6.50-$7.00/Mcf, through the summer, the US Energy Information Administration said on Tuesday. In its May short-term energy outlook, EIA reported that the Henry Hub spot price averaged over $7.30/Mcf in April compared with $5.88/Mcf in April 2004. "High crude oil prices, combined with the unusually cold March weather for much of the nation," boosted spot prices, it noted. But prices have dropped recently "in response to generally mild weather and declining crude oil prices," the agency said, adding that they "may continue to ease somewhat" in the coming months. "Still, natural gas supply conditions are expected to remain tight over the same period," which should keep prices close to $7.00/Mcf through the summer, it reasoned. Henry Hub spot prices are expected to average $7.01/Mcf this year and $7.33/Mcf in 2006, EIA said, adding to its month-ago estimates by 6 cts and 43 cts, respectively. This story was originally published in Platts Natural Gas Alert http://www.naturalgasalert.platts.com
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