North America gas weekly update: Storage quickly sets to flip back to surplus

Henry Hub gas prices continue their downward spiral this week, falling as low as $3.50/mmbtu. Supply is fully recovered from freeze-offs while demand is much lower thanks to above-normal winter temperatures blanketing nearly all of North America minus Southern California. How mild has the weather been? An extremely uncommon, January weekly injection may be in the cards for the week ending 6 January. With no cold in sight for the next two weeks, the large storage deficit briefly created by Winter Storm Elliott will vanish as inventories flip to a surplus. The North America gas markets continues to focus on a few key questions: • Is winter over? • Can Henry Hub gas prices fall even further? • When will Freeport LNG restart?