Natural Gas Prices Moderate as Milder Weather Offsets Supply Worries

Storage Surplus and Weather Models

Milder-than-expected early January forecasts have cooled the heating demand outlook. With storage levels currently 4% above the five-year average, the 'fear premium' associated with winter freezes has largely evaporated.

LNG Export Momentum

The long-term floor for natural gas is being supported by the ramp-up of new LNG export capacity. As the U.S. increases its share of the European gas market, the Henry Hub price is expected to stay resilient near $3.50.