The US Energy Information Administration on June 9 cut its forecast for total US natural gas marketed production for the remainder of the year amid weak gas and power demand. However, it expected production to rise beginning in Q2 2021 propelled by higher prices.
EIA lowered its gas marketed production estimate in Q2 2020 by 600 MMcf/d to 97.78 Bcf/d. The estimate for Q3 trimmed by 160 MMcf/d to 94.98 Bcf/d. Raised by 460 MMcf/d to 92.4 Bcf/d for 2021, the production forecast for 2020 on average was lowered 280 MMcf/d to 96.79 Bcf/d.
EIA cut its forecast for Q2 Henry Hub spot prices by 12 cents to $1.73/MMBtu. The Q3 forecast lowered 21 cents to $1.90/MMBtu. The agency projected Henry Hub natural gas prices would average $2.04/MMBtu for full-year 2020 and $3.08/MMBtu in 2021, in contrast with the May estimates of $2.14/MMBtu and $2.89/MMBtu, respectively. The inventories, starting June at 18 percent above the five-year average, are expected to reach a record of more than 4.1 Tcf on October 31.
