CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

US nat gas price to hold steady in 2022 as output increases

By Fitri Wulandari

09:26, 22 December 2021

Blue flames from a gas cooker
US natural gas is forecast to be steady in 2022 due to higher year-on-year production growth – Photo: Shutterstock

The price of US natural gas is forecast to be steady for overall 2022 due to higher year-on-year growth of production, before dropping in 2023.

Bank of America (BofA) Global Research in its recent forecast has maintained its forecast for Nymex Henry Hub natural gas futures at $3.45/per million British thermal units (MMBtu) in 2022, compared with a forecast of $3.47/MMBtu in 2021. The price is forecast to ease to $3.10/MMBtu in 2023.

“Meanwhile with 3.5 Bcf/d (billion cubic feet per day) of year over year production growth on the horizon, we see lower prices ahead,” BofA said.

Renewables up, gas down

Henry Hub has dropped to below $4/MMBtu from more than $6/MMBtu in October due to an expected warmer winter.

BofA expects gas-fired power generation to fall by 0.5 Bcf/d to 30.3 Bcf/d in 2022 year-on-year as expansion in renewable energy capacity may compensate for the fall in coal-fired plants.

Oil - Crude

72.22 Price
-1.690% 1D Chg, %
Long position overnight fee -0.0225%
Short position overnight fee 0.0006%
Overnight fee time 22:00 (UTC)
Spread 0.040


2,019.57 Price
-0.470% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.30

Natural Gas

2.69 Price
-0.150% 1D Chg, %
Long position overnight fee 0.0527%
Short position overnight fee -0.0746%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Brent

77.03 Price
-1.510% 1D Chg, %
Long position overnight fee -0.0148%
Short position overnight fee -0.0071%
Overnight fee time 22:00 (UTC)
Spread 0.032

“Despite over 15 GW (gigawatts) of coal closures expected next year, the highest annual total since 2015, we do not see natural gas power generation increasing in 2022,” it said.

What is your sentiment on Natural Gas?

Vote to see Traders sentiment!

Renewable expansion

Renewable capacity is expected to expand by roughly 28GW next year – 7GW from wind and 21GW from solar.

“Increasing renewable capacity will continue to reduce the call on thermal generation, which we expect to fall to an all-time low average capacity of 267GW next year,” BofA said.

Coal utilisation rates should drop to 44.4% from 45.7% in 2021, reducing the call on thermal generation to a new low, it added.

Read more: US oil prices bounce back, but worries over Omicron remain

Markets in this article

Natural Gas
Natural Gas
2.6860 USD
-0.004 -0.150%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading