Natural gas prices fall in first half of 2023 amid record production and mild temperatures

The average monthly spot natural gas price at the U.S. benchmark Henry Hub fell 34%, or $1.12 per million British thermal units (MMBtu), to $2.18/MMBtu between January and June, according to data from Refinitiv Eikon. The Henry Hub price averaged $3.30/MMBtu in January on an inflation-adjusted basis and then dropped below $2.50/MMBtu starting in February. Relatively mild temperatures, record production, and higher-than-average inventories reduced natural gas prices. When adjusted for inflation, this year has seen the lowest average monthly Henry Hub price since June 2020.