BAKU, Azerbaijan, December 26. Throughout 2023, a boost in natural gas production played a role in amassing more natural gas in US storage as the winter heating season kicked off, the US Energy Information Administration Agency (EIA) said, Trend reports.
According to the EIA report, the surplus in inventories by the end of November prompted a downward adjustment in our forecast for natural gas prices in comparison to the November outlook.
Starting the winter heating season at over 3,800 billion cubic feet (Bcf), storage inventories exceeded the five-year (2018-2022) average by 5 percent. Mild winter conditions in the US during November led to a decrease in natural gas consumption.
This, coupled with increased natural gas production, contributed to a rise in storage inventories to 3,771 Bcf by the end of November, surpassing the five-year average by 7 percent.
The EIA projection anticipates that US natural gas storage inventories will maintain levels above the five-year average throughout winter and in 2024.
At the same time, the administration expects Henry Hub spot price in the U.S. is expected to hover around $2.80 per million British thermal units (MMBtu) throughout the remaining winter heating season, concluding in March.
