North America gas weekly update: Despite largest withdrawal of the season, prices continue lower

Despite the largest weekly storage withdrawals this winter expected last week, Henry Hub prices continue to head lower, with prompt March 2019 Henry Hub prices now under $2.70/mmbtu. The mini polar vortex was cold, but a quick warm-up has lowered forward storage withdrawal expectations. We expect -246 bcf, -81 bcf and -133 bcf of withdrawals from US Lower 48 working gas storage through February 15 as we exit the peak winter season at 1.74 tcf. Punxsutawney Phil emerged from his burrow around and did not see his shadow, predicting an early spring. Although his track record has been dubious, natural gas markets sentiment seems to agree.