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WASHINGTON — The Henry Hub natural gas spot price is expected to average approximately 65 cents higher per million British thermal unit (MMBtu) this year, while natural gas working inventories ended February at a level below the same time one year ago, according to the U.S. Energy Information Administration.

EIA expects the spot price to be $3.41 per MMBtu in 2013 and $3.63 per MMBtu in 2014. It averaged $2.75 per MMBtu in 2012.

In other energy news, the weekly U.S. average regular gasoline retail price fell in early March for the first time since mid-December. The March 11 average was $3.71 per gallon, down 7 cents per gallon from Feb. 25.

EIA expects that lower crude oil prices will result in monthly average regular gasoline prices staying near the February average of $3.67 per gallon over the next few months, with the annual average retail price declining from $3.63 per gallon in 2012 to $3.55 per gallon in 2013 and $3.38 per gallon in 2014.

U.S. crude oil production exceeded an average level of 7 million barrels per day in November and December, the highest volume in more than 20 years.

EIA warns that energy price forecasts are highly uncertain and that the current values of futures and options contracts suggest prices could differ significantly from its forecast.

WASHINGTON — The U.S. Energy Information Administration (EIA) projects average household expenditures for heating oil and natural gas will increase by 19% and 15%, respectively, this winter (Oct. 1 through March 31) compared with last winter, according to the agency's Short-Term Energy Outlook released earlier this month.

Projected household expenditures are 5% higher for electricity and 13% higher for propane this winter.

The forecast for higher household expenditures primarily reflects a return to roughly normal winter temperatures east of the Rocky Mountains compared with last winter's unusual warmth.

EIA expects U.S. total crude oil production to average 6.3 million barrels per day (bbl/d) in 2012, an increase of 0.7 million bbl/d from last year. Projected U.S. domestic crude oil production increases to 6.9 million bbl/d in 2013, the highest level of production since 1993.

Natural gas working inventories ended September at an estimated 3.7 trillion cubic feet (Tcf), about 8% above the same time last year. EIA expects the Henry Hub natural gas spot price, which averaged $4.00 per million British thermal units (MMBtu) in 2011, to average $2.71 per MMBtu in 2012 and $3.35 per MMBtu in 2013.

WASHINGTON — Natural gas working inventories ended November at a record high for that date, about 1% above last year, and the Henry Hub spot price for natural gas averages $4.02 per MMBtu for the year, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook report released Dec. 6.

The EIA expects that Henry Hub spot prices will continue to decline in 2012, averaging $3.70 per MMBtu, 43 cents per MMBtu lower than the previous month’s Outlook.

The warm start to the heating season has lowered the forecast of average household heating expenditures for heating fuels by about 3% from last month’s Outlook. Average household heating oil and propane expenditures are now expected to increase by 8% and 5%, respectively, this winter (Oct. 1 to March 31) compared to last winter.

Monthly average regular-grade gasoline retail prices averaged $3.38 per gallon in November, 52 cents per gallon below their 2011 peak monthly average in May. EIA expects that pump prices will remain at or below current levels until early spring 2012, when prices begin their normal seasonal rise. Prices are projected to average $3.45 per gallon in 2012.

WASHINGTON — Based on several weeks of strong inventory builds, the U.S. Energy Information Administration (EIA) has revised its projections for natural gas prices downward through 2011, according to its latest Short-Term Energy and Winter Fuels Outlook.