Natural Gas Prices Forecast

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Natural Gas Prices Forecast

Natural Gas Prices Forecast For 2025 - Bofa

BofA analysts believe that something major and transformational will happen to the natural gas prices in the year 2025.The analysts added that the supply will tighten while the price will rise in the natural gas market. The factors which will drive this are the reduced production growth and increased reliance on the LNG export.If we analyze this statement from the BofA, it appears to be true. After all, the natural gas market is going through a structural shift.

Natural Gas Prices To Reach $4.00

BofA has also forecasted that the natural gas prices will likely reach $4.00. This is a major upgrade from the earlier forecasts and shows that prices will increase in 2025. The increase in natural gas prices is based on the expectations of tight supply-demand during 2H 2025.Also, projects such as Corpus Christi Stage 3 and Plaquemines LNG will increase the demand for natural gas. These facilities are expected to create 3.5 billion cubic feet of demand every day!The BofA analysts have also highlighted how the production has taken a hit. On top of that, the basin's production is not up to par with demand.Amidst all of this, the domestic electrification and the LNG demand are seen as key drivers for the consumption of natural gas.

BofA believes that the US natural gas prices will also increase based on the LNG arbitrage opportunities. After all, the international market is already willing to pay more for gas as compared to the natural gas' domestic benchmarks.Also, the outlook for the oil markets in 2025 is very challenging. In fact, BofA believes that the oil prices will move lower due to oversupply.Given all of this, BofA believes that its only natural for the gas prices to move higher. This move to the upside will also benefit the stocks which are in this sector.

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