A Warm Winter Would Be ‘Catastrophic’ For Natural Gas

The woes for natural gas drillers continue, with forecasts for prices over the next few years showing a market stuck with oversupply. “Any hope of higher peak winter prices likely hinges on sustained cold weather,” Bank of America Merrill Lynch wrote in a note last week. “Even then, we believe the upside in prices is limited.” Rising production has more than offset the steady increase in demand from coal-to-gas switching. Inventories have climbed this year at a faster pace than in 2018, replenishing what had been depleted…