North America gas weekly update: Slow start

Another flip flop from storage withdrawals to injections as we move into April is expected. However, April is setting up to be much colder than normal and with it likely only smallish injections during the start of the shoulder season. With the storage deficit increasing rather than decreasing, the market’s worry of storage adequacy prior to the winter is clear and present. Will ever higher natural gas prices change markets fundamentals. Eventually, but the longer it takes to correct the market imbalance the more upside is in store. Conversely, hints of the change in the short term markets represented through the progression of weekly storage will drive down prices hard. One things for certain: it’s going to be a volatile journey unfortunately.