Natural gas prices are expected to stay low over the next five years, as the possibility of recession looms over the global economy, research firm S&P Global Platts Analytics reported Monday.
Gas prices at Henry Hub are projected to average $2.66 per million Btu through 2024, a decline of 8 percent from last quarter’s forecast. Natural gas prices averaged $3.17 per million Btu last year.
“This is in response to softening global market conditions, increased associated gas production and muted domestic demand-side gains,” the report read.
Were the global economy to go into recession next year, demand from U.S. power and industrial sectors would likely decline a combined 2 billion cubic feet a day – 2 percent of total U.S. demand – further drawing down prices, Platts said.
“A global economic recession remains a distinct possibility next year,” the report said.