US Natural Gas Prices in Turmoil. Cold Snap, Record Exports, and an Uncertain Future

• The weather has created a lot of volatility in US natural gas prices this year, with prices on a rollercoaster between USD 3/mmbtu and USD 4.2/mmbtu.
• Near term, as we move into the shoulder season with weaker demand, the risk that prices could decline from current levels persists, in our view.
• Longer term, we retain a constructive outlook. But given high roll costs, which remain a drag on performance, we prefer to remain on the sidelines at present.