North America gas weekly update: Milder than normal weather continues

With the window for peak winter closing and storage levels all but guaranteed to enter spring at a substantial surplus, US natural gas prices at Henry Hub, at their lowest levels in nearly four years. While demand is likely to remain restrained in coming weeks, US gas production continues to hover just below all-time highs. Henry Hub’s search for a floor, now well below $2/mmbtu, will look to bolster fuel switching demand in the power sector while signalling the need for producers to significantly slow down production plans this year. This weekly natural gas commodity report seeks to explore: • Is any turnaround seen in current mild weather forecasts? • Has US production hit new record highs? • How much will the storage surplus expand in coming weeks?