Record-low inflation-adjusted natural gas prices, says EIA

Thursday, December 12, 2024

For the tenth time this year, natural gas at the U.S. benchmark "Henry Hub" pricing point has reached an all-time low in inflation-adjusted dollars, according to the federal Energy Information Administration.

Image source: U.S. Energy Information Administration

According to U.S. EIA, natural gas at the Henry Hub has recently reached all-time low pricing on an inflation-adjusted basis. EIA says gas at Henry Hub was priced at $1.21 per million British thermal units (MMBtu) twice last month, on November 8 and November 11, 2024. EIA called this pricing "an all-time low in inflation-adjusted dollars." 

These record low prices were just the latest in a series, as two earlier days in November had already seen record low inflation-adjusted prices for gas at the Henry Hub. Six more record-low inflation-adjusted prices occurred earlier in 2024, according to the energy agency.

EIA attributes the record-low prices to factors including robust supply and constraints on demand. EIA also notes that natural gas prices can be volatile, as "Henry Hub spot prices spiked to over $13/MMBtu in January due to well-below-normal temperatures across most of the United States."

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