Market Speak: EIA sees lower 2027 gas prices as production keeps inventories elevated
Mumbai, Oct. 8 -- The US Energy Information Administration (EIA), in its October 2026 Short-Term Energy Outlook, said US retail fuel prices rose sharply in September, with gasoline averaging $4.35 per gallon and diesel reaching $6.29 per gallon, driven by higher crude oil prices and rising refining margins. The agency expects the pressure to ease next year, forecasting average retail diesel prices at around $4.50 per gallon and gasoline prices just below $3.60 per gallon. Meanwhile, the EIA forecasts the Henry Hub natural gas spot price to average $3.16 per million British thermal units in 2027, down 9% from 2026. The decline reflects expectations of above-average natural gas inventories, as rising production is expected to offset stronger ...
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