FMP

FMP

Enter

Goldman Sachs Adjusts Natural Gas Price Forecasts Amidst Production Shifts

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Ibrahim Boran

Amidst shifting production dynamics and market trends, Goldman Sachs analysts have revised their forecasts for natural gas prices, projecting limited upside until 2025. The firm anticipates a rebound in production starting in June but expects it to settle at a lower level than previously anticipated.

Goldman Sachs has upwardly revised their BalSum24 Henry Hub forecast to $2.65/mmBtu (from $2.15/mmBtu) and forwards to $2.88/mmBtu. This adjustment reflects ongoing declines in production, which have remained below 99Bcf/d in recent weeks. The firm has revised its production forecast to 100.6Bcf/d for the rest of the summer, a decrease of 0.5Bcf/d.

Despite these revisions, Goldman Sachs sees limited upside for gas prices in the near term. They argue that sustained price increases could lead to reduced coal-to-gas switching and an unwinding of production shut-ins, preventing significant tightening in the market and keeping storage levels elevated, which could increase congestion risks.

The analysts suggest that meaningful price increases are more likely to occur once winter begins, driven by rising feedgas demand from new LNG projects. They also highlight additional demand support from growth in data centers and electrification.

As a result, Goldman Sachs remains bullish on Sum25 Henry Hub, forecasting it at $4/mmBtu compared to forwards at $3.37/mmBtu. They recommend taking a long position on Jun25 Henry Hub.

For investors and industry observers looking to stay updated on natural gas price forecasts and market trends, accessing comprehensive financial data is essential. Financial Modeling Prep (FMP) offers a Full Financial Statements As Reported API, providing access to complete financial statements for companies. With this API, users can analyze income statements, balance sheets, and cash flow statements to better understand a company's financial performance and health.

To explore more comprehensive financial data and stay informed about natural gas price forecasts, check out FMP's Full Financial Statements As Reported API here.

Stay ahead of market developments and make informed investment decisions with FMP's comprehensive financial data solutions.

Other Blogs

Jul 10, 2024 2:34 AM - Parth Sanghvi

Capital Budgeting Techniques: NPV, IRR, and More - A Comprehensive Guide

Capital budgeting is a critical financial process that companies use to evaluate and select long-term investments or projects. It involves assessing potential expenditures and determining their profitability to ensure that resources are allocated effectively. This comprehensive guide covers essentia...

blog post title

Aug 7, 2024 3:53 AM - Parth Sanghvi

The Impact of Interest Rates on the Economy and Financial Markets: A Comprehensive Analysis

Interest rates play a crucial role in the economy and financial markets, influencing everything from consumer behavior to investment decisions. Understanding their impact is essential for making informed financial and investment decisions. This comprehensive analysis delves into how interest rates a...

blog post title

Sep 10, 2024 7:33 AM - Parth Sanghvi

Best Alternatives to Yahoo Finance for Downloading Historical Stock Data

When it comes to downloading historical stock data, Yahoo Finance has been a popular choice for many. However, for those looking for more comprehensive, accurate, and flexible options, Financial Modeling Prep (FMP) offers a suite of powerful tools and services that stand out as superior alternatives...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedin
2017-2025 © Financial Modeling Prep