The US Energy Information Administration lifted its natural gas price forecast for this year but still expects prices to fall in 2027. Ample production is set to outweigh rising demand, even as the agency projects record power burn and soaring LNG.
The EIA now expects higher natural gas prices in 2026 than it did previously, yet it maintains that prices will trend lower in 2027 as growing production outpaces demand. The revision came in the agency’s latest Short-Term Energy Outlook.
Supply keeps a lid on prices
Rising output is the reason the agency holds a downward view for 2027, according to the Short-Term Energy Outlook. Production growth is weighing on the forecast, even as the EIA points to record power burn and soaring LNG on the demand side.
The outlook also covers storage. The agency expects inventories to end October at 3.97 Tcf.
The EIA raised its 2026 Henry Hub forecast in the same outlook. For traders following natural gas, the agency’s message is a higher price path this year and a lower one in 2027 as ample production outweighs rising demand.
Source: Natural Gas Intelligence (snippet-based)
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