US Department of Energy reports decline in daily gas prices to minimum in February

The average daily spot gas price in the United States in February fell to its lowest level since at least 1997, according to the Energy Information Administration of the US Department of Energy.

The administration notes that, according to Refinitiv Eikon data, on February 20, 2024, the daily US natural gas price at the Henry Hub averaged $1.5 per million British thermal units, the lowest price in inflation-adjusted dollars since at least 1997.

The decline was triggered by high gas production, low consumption and higher reserves compared to the average for the previous five years. Due to increased production and relatively low consumption, less gas has been withdrawn from storage this winter, and large inventories indicate an oversupply in the market and help lower gas prices.

February saw six record low daily prices, the US Department of Energy notes. Since February 7, the Henry Hub price has remained below $2. The last time the price of gas in the US was this low in 2020.

Previously, the US Department of Energy expected an increase in spot gas prices in the country in 2024-2025.