EIA May STEO Again Lowers Projected Gas Spot Price for 2026, 2027

The U.S. Energy Information Administration (EIA) issued its latest monthly Short-Term Energy Outlook (STEO) yesterday. Using the official EIA dartboard, the STEO is the agency’s monthly best estimate of where energy prices and production will go over the next 12 months. There was a revision to the agency’s prediction about the spot price (at the Henry Hub) for natural gas in 2026 and 2027. For the second month in a row, the EIA has significantly lowered its predictions for the HH spot price. Last month, EIA predicted the spot price would average $3.67 per million British thermal units (MMBtus) this year, and $3.59 next year (see EIA April STEO Lowers Projected HH Spot Price for 2026 & 2027). Yesterday, those prices were revised to $3.50 in 2026 (down 17 cents) and $3.18 in 2027 (down 41 cents). Why the big drop?

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