Natural gas prices are projected to go up this winter despite the U.S. having a healthy stockpile.
The average price for natural gas is expected be 40% higher than the November spot price for the remainder of the winter season, the U.S. Energy Information Administration said Tuesday.
Still, prices are expected to be lower than the high prices seen in 2022 and 2021, EIA Administrator Joe DeCarolis said.
“Recent natural gas prices have been historically low, so a colder winter than last will draw on storage and raise prices to some extent,” he said.
The EIA said the U.S. started the 2024 winter season with 6% more natural gas in storage than the five-year average, and projects the inventories will remain 2% above the average at the end of winter.
Since 2021, prices for natural gas delivered to residential consumers peaked at $25.34 per thousand cubic feet in Aug. 2022, according to the EIA.
