BAKU, Azerbaijan, October 9. In a recent statement, BMI, a Fitch Solutions company, has outlined its expectations for the Henry Hub natural gas prices in the coming weeks and months, Trend reports.
"We anticipate that the Henry Hub natural gas prices will maintain a subdued trajectory in the upcoming weeks due to the expectation of mild weather conditions, which will limit the demand for heating. However, as the heating season commences in November, we anticipate a boost in prices during the last two months of the year,” the company said.
Based on weather models from the US National Weather Service, the United States is likely to experience temperatures above average in October, followed by average levels in November and December. Consequently, BMI projects that prices will respond to the seasonally higher demand from residential and commercial sectors during the latter part of the fourth quarter of 2023.
“We foresee prices averaging higher than the current levels of USD 2.9/million British thermal units (mnbtu) over November and December. This will result in the annual average settling above the year-to-date level of USD 2.6/mnbtu. As a result, our annual Henry Hub front month price forecast is expected to average closer to USD 2.9/mnbtu. This represents a slight adjustment from our initial expectation of USD 3.0/mnbtu,” said the company.
This assessment suggests that while the immediate outlook for natural gas prices may remain subdued, a shift in demand during the heating season could drive prices higher in the latter part of Q4 2023.
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