The U.S. Energy Information Administration (EIA, part of the Department of Energy) expects natural gas prices to increase from November levels as a result of both higher winter demand for natural gas and increased LNG exports.

Its forecast for the Henry Hub spot price averages above $6.00 per million British thermal units (MMBtu) in the first quarter of 2023, up from November’s monthly average of about $5.50/MMBtu.

Natural gas

It also expects natural gas prices to begin to decline beginning in January as U.S. storage levels approach the five-year average, largely as a result of increased U.S. natural gas production.

However, the potential for price volatility remains high.