Goldman Sachs is maintaining its bullish forecast for U.S. natural gas prices, reiterating a $4.50/mmBtu target for Summer 2026 Henry Hub. The bank noted that risks to its outlook are tilted to the upside, particularly if there are delays in producer investment.
Looking ahead, Goldman continues to expect that a pickup in drilling activity will be necessary to support sustained U.S. gas production growth through 2026. Current levels of investment, the bank warns, may fall short of what’s needed to meet future demand.
In line with this view, Goldman is continuing to recommend a long position in April 2026 Henry Hub contracts, citing favourable fundamentals and limited supply-side responsiveness.
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Henry Hub is the main pricing benchmark for natural gas in the United States. It’s a physical pipeline hub located in Erath, Louisiana, and it’s where several major natural gas pipelines converge.
Natural gas futures traded on the New York Mercantile Exchange (NYMEX) use Henry Hub as the delivery point.
When someone says something like “$4.50/mmBtu Henry Hub”, they’re talking about the expected price of U.S. natural gas per million British thermal units, using Henry Hub as the pricing basis.
It’s the natural gas equivalent of “WTI crude” for oil — a central benchmark for trading and contracts.
This article was written by Eamonn Sheridan at investinglive.com.