Dallas Federal Reserve Forecasts Higher Natural Gas Prices

A report by the Federal Reserve Bank of Dallas predicts higher U.S. natural gas prices.

"Higher oil prices, several cold spells, seasonal gains in demand, reduced inventories and expectations of increasing natural gas use to generate electricity are continuing to push prices upward," the bank says in its first quarter energy report.

"Much higher natural gas prices seem likely even though U.S. producers are thought to be sitting on sizable supplies of undeveloped resources," the bank says. "A recovery in U.S. manufacturing should sharply boost natural gas demand. Once LNG imports become the marginal source of U.S. supply, much higher international natural gas prices should prevail."