April STEO – U.S. Electric Use to Hit New Record High in 2024/25

Once a month, the analysts at the U.S. Energy Information Administration (EIA) issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months or so. We sometimes poke good-natured fun at the EIA because their predictions go up in one month, and in the next month, they go down, etc. What about the latest STEO dart board, published on Tuesday? EIA predicts the average spot price for natural gas will be $2.20/MMBtu in 2024. That's down significantly (17%) from the $2.65 it predicted just two months ago in February's report (see EIA Predicts NYMEX Henry Hub to Average $2.40/MMBtu in Feb/Mar). EIA says the average spot price for gas will hit $2.90 in 2025. Still way too low, in our opinion, but moving in the right direction. On the shorter-term horizon, EIA believes the spot price will average under $2 for the second quarter. No duh! It hasn't been above $2 since January!

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