The Energy Information Administration (EIA) has released its Short-Term Energy Outlook for November, and the projected spot price for natural gas in 2011 is not robust:
The decline in prices over the past two months was partly the result of high production, mild weather, and the absence of significant hurricane activity in the Gulf of Mexico, all of which contributed to the large inventory build. Projected Henry Hub prices rise to $4.22 per MMBtu in January 2011 because of the increase in winter space-heating demand. EIA has lowered the average 2011 Henry Hub price forecast from last month's Outlook by $0.27 per MMBtu, to $4.31 per MMBtu, based on the upward revisions in the domestic production and inventory forecasts. (Emphasis is ours.)
For more, see here.