North American natural gas prices have been hammered for the past two weeks, and despite a minor rally, remain well below the $2.00 mark.

The  March New York Mercantile Exchange gas futures contract on Thursday settled at $1.732/MMBtu, down 4.1 cents day/day. Prices had jumped on Wednesday after Chesapeake Energy Corp. said it intended to pull back production from the Haynesville and Marcellus shales.

Still, U.S. production remained strong at around 103 Bcf/d and mild weather conditions have kept demand in check. 

“Prices have been low since they peaked during the mid-Jan winter storm,” Mexico trader Santiago Villareal told NGI’s Mexico GPI. “In Mexico, on the user side, they are very pleased. Everything that they budgeted for is getting cheaper. But this has had an...