natural gas

natural gas

Wednesday, November 12, 2014

EIA Lowers Gas Price Forecast

DJ EIA Lowers Natural-Gas Price Forecasts


   By Nicole Friedman


  NEW YORK--Natural gas will cost less this winter than previously expected due to record production and lower demand,
government forecasters said Wednesday.

  The U.S. Energy Information Administration, in its monthly short-term energy outlook released Wednesday, called for
the spot price of natural gas to average $3.97 a million British thermal units this winter, down from last month's
estimate of $4/mmBtu. Last winter, spot prices averaged $4.53/mmBtu, the agency said.

  The EIA also lowered its price forecast for 2015 from $3.84/mmBtu to $3.83/mmBtu.

  Residential natural gas prices will likely average $10.46 a million cubic feet this winter, up from $10/mcf last
winter, the agency said.

  Gas storage hit 3.571 trillion cubic feet on Oct. 31, more than expectations from a month ago. Stockpiles started
this spring at less than half of their five-year average, but stood just 7% below the five-year average by Oct. 31, the
EIA said.

  By the end of the winter-heating season in March, the EIA expects inventories to total 1.562 billion cubic feet, up
from last month's estimate of 1.534 bcf.


  Write to Nicole Friedman at nicole.friedman@wsj.com


  (END) Dow Jones Newswires

  November 12, 2014 13:02 ET (18:02 GMT)

  Copyright (c) 2014 Dow Jones & Company, Inc.

111214 18:02 -- GMT
------

No comments:

Post a Comment