May STEO Predicts NatGas Production to Fall Slightly in 2Q

Once a month, the U.S. Energy Information Administration (EIA) analysts 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. 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 yesterday? EIA predicts the average spot price for natural gas will be $2.20/MMBtu in 2024, the same prediction as last month (see April STEO – U.S. Electric Use to Hit New Record High in 2024/25). However, the agency raised the average spot price prediction for gas in 2025. Last month, it was $2.90; this month, it's $3.10. Hey, it's moving in the right direction!

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