“But given additional cold risks down the road and expectations of gradual market tightening moving forward with imports still near lows and exports back elevated, we still see risk skewed higher through the week,” Bespoke chief meteorologist Jacob Meisel said.
Meanwhile, on the supply side, production remains under their previous high levels. While recent balances have been looser, Bespoke argued that there is risk storage could dip below 1.2 trillion cubic feet as the cold pushes through March.
“This can keep a solid bid at the front of the curve and has us at least see $2.75 resistance finally in play again this week. $2.80 is certainly doable if we continue to add GWDDs as well, even with another bearish Energy Information Administration print likely Thursday,” Meisel added.
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