North America gas weekly update: Heating up

Whispers of heat sure can drive rallies, can’t they? Despite LNG and Mexican exports showing some inconsistency and Northeast production recovering after earlier than expected pipeline maintenance completions, it is weather that is moving prices. Expect the fundamentals to tighten, though, as LNG will get past its current outages and production will continue to weaken, thanks to capital discipline. Our supply-demand imbalance metric continues to point toward tightening market conditions, and if it persists, it could complement weather’s rallying effect.