Natural gas prices have dropped: Here’s the latest advice

  • Natural gas prices skyrocketed in late 2021 and 2022.
  • Natural gas prices have fallen and the forecasts are good.
  • Should you switch natural gas supplies? It depends..

It’s time for a natural gas update as prices and future outlook have come down.

In fall 2021, I advised those using Dominions Default or Standard Choice Offer (SCO), which were close to wholesale rates, to switch to a fixed rate or aggregation rate. Prices rose and energy projections were high through 2022.

Prices went everywhere. We got used to prices in the $3 per thousand cubic foot (mcf) range. The SCO rose to $9.53/mcf in September 2022 and $4.17/mcf in January 2022 and almost everything in between.

Gas burners on a stove.

What is happening to natural gas prices now?

The US Energy Information Administration’s most recent Short-Term Energy Outlook, Feb. 9, forecasts an average wholesale price of $3.40, down almost 50% year-on-year and about 30% from the January forecast.

After the September high of $9.53, the price rose to $7.05 in October, $5.37 in November and $6.89 in December. In January the SCO was $4.89 and February was $3.29.

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