Higher demand from the power generation sector and low inventory heading into winter have created a volatile U.S. natural gas price market, Drillinginfo said in its “Natural Gas Winter Update,” released last week.

But strong fundamentals, including an uptick in production, may have painted a bigger picture in which the recent arctic snap across much of the country is little more than the storm before the calm.

“While production in the Northeast and Permian continues to grow, storage levels entered the winter at record lows,” said Rob McBride, Drillinginfo’s senior director of market intelligence, in a statement accompanying release of the report. “Early cold led to extreme price volatility which has since subsided as storage levels and weather returned closer to normal.”

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