Morgan Stanley has updated its forecast for U.S. natural gas prices in 2025, raising its expectations due to the ongoing expansion of liquefied natural gas (LNG) and higher heating demand. The bank now expects prices at Henry Hub to average $4.15 per million British thermal units (mmBtu) this year, up from the previous forecast of $3.75/mmBtu.
In addition, the bank has lowered its storage estimate for the end of March, reducing it from 1.84 trillion cubic feet (Tcf) to 1.55 Tcf. This marks a decline of around 17% compared to the 5-year average.
While winter weather has been favorable for natural gas demand so far, the analysts caution that it remains uncertain for the remainder of the season. If February and March are milder, inventories may stay close to 1.8 Tcf. However, if the winter ends colder than usual, stock levels could drop to roughly 1.3 Tcf.
Related Topics:
- Is Heating Fuel Oil The Same As Diesel
- Which Fuel Produces Less Pollution?
- Is It Better to Use E85 or Regular Gas?