Monday, November 28, 2016

2017 wholesale gas forecasts at Henry Hub

The US EIA expects that average spot prices at the Henry Hub - a liquid gas trading point often used to set market prices - will increase by more than 20% next year, from $2.51/MMBtu — the lowest in a decade — to about $3.07/MMBtu. As a comparison, Deutsche Bank also expects Henry Hub gas spot prices to rise on average to $3.25/MMBtu, Energy Ventures Analysis puts it at $3.30, and Goldman Sachs predicts $3.15.

US power markets and utilities anticipate this price increase and mild weather, will lead to a decline in revenues and margins in 2017.

Monty Bannerman
ArcStar Energy
+1 646.402.5076
www.arcstarenergy.com

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