Forecasts for natural gas is down, or lowered, as the supply-and-demand ratio is well supplied and U.S. inventories have surged to the second-highest level ever. Worldwide, and in the United States, there is plenty of natural gas for consumers to use and consumption will lower by 1.3%, reports Tom Stundza for Purchasing.com.
Natural gas consumption normally climbs in the summer as cooling demand kicks in, but it might not be enough for a price recovery anytime soon because inventories are well above where they usually are at this time of year.
The outlook overall seems to be optimistic, though: The U.S. Energy Information excepts natural gas consumption to fall 1.3% this year and rise 0.4% next year. Likewise, Henry Hub spot prices averaged $4.65/Mcf in February, are expected to hit $4.67/Mcf in 2009 and $5.87/Mcf in 2010.