North America gas weekly update: Freedom gas
Despite Punxsutawney Phil seeing his shadow and calling for colder than normal temperatures to continue for another six weeks is he wrong again? A relaxation of cold for the remainder of February, has pressured Henry Hub gas prices to cough up most of its prior gains. Nevertheless, cold weather has brought down our expected end of withdrawal season storage levels lower. Will we struggle to refill storage this summer as US LNG feedgas requirements continue higher? If so, higher gas prices may be necessary to incentivize more production growth and disincentivize gas power burns.