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Analysts expect gas price rise in U.S.

Oil&Gas Materials 30 September 2009 17:51 (UTC +04:00)
In September, futures prices for gas in the U.S. fell to its lowest level for seven years, reaching $91.9 per thousand cubic meters. In total, since early 2009, gas prices in the country have fallen by 56 percent.
Analysts expect gas price rise in U.S.

Azerbaijan, Baku, Sept. 30 / Trend , A.Badalova/

In September, futures prices for gas in the U.S. fell to its lowest level for seven years, reaching $91.9 per thousand cubic meters. In total, since early 2009, gas prices in the country have fallen by 56 percent.

Nevertheless, analysts expect a long-term rise in fuel prices in the United States.

One of the world's giants - U.S. bank JP Morgan forecasts for 2010 growth in gas prices in the United States to $218.3 per thousand cubic meters compared to $154.4 per thousand cubic meters in 2009.

U.S. State Energy Information Agency (EIA) predicts the monthly spot price for gas at the Henry Hub gas distribution site in the United States in October at $81.2 per thousand cubic meters, which, according to the agency, is the lowest level since September 2001.

In 2009, the EIA predicts the average spot price for gas in the U.S. at $127.75 per thousand cubic meters. In 2010, the price was expected to increase to $167.3 per thousand cubic meters.

According to the EIA, the growth in gas prices next year, however, will be limited due to the sensitivity of demand for natural gas, particularly in the electricity sector, high prices and increasing fuel production in the United States.

So far, some 87 percent of the U.S. demand for natural gas is provided by its own production, 11 percent - via the pipeline imports and two percent - via import of the liquefied natural gas. On Sept. 21, natural gas reserves in the U.S. totaled 3.525 trillion cubic feet.

According to the forecasts of the British Capital Economics, gas prices next year may grow to $183.8 per thousand cubic meters.

According to forecasts by Oil Daily, the average futures price for gas in the U.S. in the autumn will be $208.6 per thousand cubic meters.

Forecasts for gas price in U.S.

Company

2009 - $/thousand cubic meters

2010 - $/thousand cubic meters

JPMorgan

154.4

218.3

EIA

127.75

81.2 (October)

167.3

Capital Economics

-

183.8

Oil Daily

208.6 (autumn)

 

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