North America gas weekly update: transition back to normal cold may support prices

A return to more normal winter weather would go a long way in reviving Henry Hub gas prices. Recent short term weather forecasts are looking more promising but have been quite fickle. When coupled with still constructive fundamental market signals, Henry Hub prices may have found a near-term floor. However, damage has already been done as a mild December has followed by an even milder January to date. The remainder of peak cold weeks in January and February can still result in very large triple digit storage withdrawals. Will weather cooperate this time around? If so Henry Hub prices may have some legs to rebound from its abyss.