North America gas weekly update: 2 & 20

Both oil and gas prices are recovering. Fundamentally unsustainable low prices are resulting in large scale oil shut-ins to commence. Free market economics are working without the need of governmental intervention such as proration in Texas. Recover even higher is expected as the supply-demand imbalance is corrected. However, a rise too fast may incentivize operators to return shut-in production too quickly and resume fracking new wells. More upside looms ahead if producers are not in a rush to grow again at the first peak of higher pricing. Until then, coronavirus demand losses and higher US LNG under-utilizations may net out the impact of large scale oil production shut-ins.