The Energy Information Administration (EIA) has released its Short-Term Energy Outlook for March, 2010. Regarding natural gas prices:
EIA expects this year’s annual average natural gas Henry Hub spot price to be $5.17 per million Btu (MMBtu), a $1.22-per-MMBtu increase over the 2009 average. EIA projects price increases to continue in 2011, averaging $5.65 per MMBtu for the year. Projected working gas inventories end the first quarter of 2010 at about 1,550 billion cubic feet (Bcf) compared with 1,644 Bcf in the previous Outlook because of colder-than-normal weather in February. Natural-gas-weighted heating degree-days were nearly 11 percent above the 30-year norm last month.
It makes that prediction based in part on an expectation that total marketed natural gas production will decline by 2.7 percent to 58.7 Bcf/d. For more, see here.