S&P hikes gas price deck for rest of 2021 as futures surge past $6/MMBtu

More and more economies across the globe will use natural gas as a transition fuel on the way to lower-carbon renewable energy sources, putting upward pressure on Henry Hub gas prices for the next three years, S&P Global Ratings said late on Oct. 4, as it hiked the assumed gas price it will use for credit decisions by 29% to $4.50/MMBtu for the rest of 2021.

Soaring prices will continue to ease credit pressures on exploration and production companies over the next two years, Ratings said. It raised the benchmark Henry Hub gas price assumptions it uses for corporate credit ratings $1/MMBtu for the remainder of 2021.

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