1235 ET – Natural gas prices have been tumbling this year in trading markets, but the EIA’s Short Term Energy Outlook suggests homeowners and renters will see hardly any benefits in their monthly utility bills. The EIA says in its monthly report it expects natural gas spot-market prices to average just $2.94/mmBtu this year, a massive 54% drop from last year’s $6.42. Despite that, the EIA says it sees average retail residential prices for natural gas, which surged by 21% in 2022, are likely to fall just 5.9% this year versus last year, and to fall just 7.7% 2024. The EIA now sees residential retail prices averaging $13.94 thousand cubic feet this year, up from $13.51 in its month-ago forecast. (dan.molinski@wsj.com)
Natural Gas Adds to Monday’s Sharp Climb
0846 ET – Natural gas is extending yesterday’s 8% rally, up another 1.8% at $2.212/mmBtu as bullish investors try to mount a rebound after prices have tumbled by more than 50% year-to-date. Analysts remain unsure what exactly is causing prices to rise this week, with some attributing it to short covering, while others credit rising prospects of stronger gas demand from power plants that are switching out of coal and into heavily-discounted natural gas. Still others say forecasts for one final shot of relatively cold air next week could give the market one final jolt of heating demand before summer. For today, investors will await the EIA’s monthly Short Term Energy Outlook due at around noon ET. (dan.molinski@wsj.com)
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