North America gas markets short-term outlook: Storage refill worries increasing

Its April not October. Yet Henry Hub gas prices have elevated to its highest levels since 2008. Winter storage worries have already begun. Why worry so early and with a storage deficit not unsurmountable? It’s because North America’s gas market ability to correct its imbalance has deteriorated. • Supply is growing but its price response is more muted and will take time • Gas burns for power need to reduce its market share to coal, but have been less price elastic A hot summer and cold winter would spell disaster. Risks of even higher gas prices persist until either supply or demand’s price response returns.