Henry Hub daily natural gas spot price reached all-time lows in November

The U.S. benchmark Henry Hub daily natural gas price fell to $1.21 per million British thermal units (MMBtu) on November 8 and November 11, 2024, an all-time low in inflation-adjusted dollars. Four of the record-low daily prices when adjusting for inflation occurred in November 2024, and the remaining six occurred in 2024 as well. The Henry Hub spot price in November averaged $2.12/MMBtu, the lowest average price for that month ever when adjusting for inflation.

Robust supply and constraints on demand contributed to the record-low prices. Mild autumn weather persisted in the first half of November, limiting natural gas consumption for heating. U.S. inventories ended the injection season on October 31 at 3,922 billion cubic feet, and the U.S. natural gas market enters the winter of 2024–25 with the most natural gas in storage since 2016. Flat U.S. net natural gas exports and limited U.S. liquefied natural gas capacity additions this year also curbed demand and weighed on prices, while we forecast marketed U.S. natural gas production to average 113 billion cubic feet per day in 2024, relatively unchanged from 2023’s record high.

Early this year, Henry Hub spot prices spiked to over $13/MMBtu in January due to well-below-normal temperatures across most of the United States.

Principal contributor: Andrew Iraola