North America gas weekly update: Spring bear

As we enter spring, a bear is coming out of hibernation. Production, which we had expected to fall off some during March and early April, is actually creeping upwards. This, along with mild weather, is raising our view of weekly storage injections. Exports are doing what they can to support price, but if Northeast production doesn’t go back to sleep, or at least sleepwalk a little before fully awakening, basis could likely widen out, and the bear would have to confront potential voluntary economic curtailments.