Historically mild weather through January has seen natural gas demand slump well below seasonal norms. Is there a bottom in sight for gas markets? Strategists at TD Securities analyze the outlook for the commodity.
Weak prices could keep production growth flat for now
“We expect that weak prices could keep production growth flat for now, but prices would need to fall below $2/MMBtu to induce material economic shut-ins.”
“While further weather-driven price weakness could be in the cards in the immediate term, we do not anticipate a further rout in prices with the return of Freeport LNG potentially signaling that the bottom is in.”