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Trusts($TRSTS) > Forum $TRSTS > Natural gas price View modes: 
  • Natural gas price

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    Canadian spot gas falls despite western heat

    CALGARY, Alberta, July 6 (Reuters) - Canadian spot natural
    gas prices fell on Friday for the 13th consecutive regular
    weekday session, as ample supplies overshadowed an increase in
    demand from a heat wave in western North American regions.
    However, forecasts call for hotter temperatures in major
    gas-consuming cities such as Toronto and Chicago next week,
    spelling prospects for an end to the lengthy losing streak.
    "There will be some bigger air conditioning loads, so
    you'll probably see day gas moving higher," a Western
    Canadian-based marketer said.
    Spot gas at the AECO storage hub fell 9 Canadian cents to
    average C$5.16 per gigajoule, its lowest price since Oct. 13,
    2006.
    Alberta spot gas has fallen 21 percent since the slide
    began on June 19.
    Deals on Friday were done between C$5.12 and C$5.23 a GJ
    and were last at the high end, according to the NGX electronic
    exchange.
    Temperatures in the western part of the continent have
    climbed into the 38 Celsius (100 Fahrenheit) range and higher,
    but the marketer said available supplies have easily handled
    the increase in air conditioning loads.
    Western Canadian storage facilities were nearly 72 percent
    full at the end of June, with four full months of injections
    remaining, according to Canadian Enerdata's estimates.
    In Alberta, players injected a net 667 million cubic feet
    into storage on Friday, up more than 100 mmcf from Thursday,
    according to TransCanada Corp. , operator of the
    province's main gas-gathering system.
    The system ran at 13.8 billion cubic feet, close to the
    target, and producers delivered 10.7 bcf from gas fields.
    Environment Canada called for above-normal temperatures in
    the Toronto area at least through next Tuesday, reaching a high
    of 35 C (95 F) on Sunday.
    In the U.S. Midwest and Northeast, temperatures are
    forecast to be above normal for the next six days, according to
    Meteorlogix.
    In futures, the New York Mercantile Exchange August
    contract fell 17.4 cents to settle at $6.444 per million
    British thermal units -- a five-month low -- on concerns over
    rising inventories and falling cash prices, traders said.
    The U.S. Energy Information Administration reported stocks
    rose 78 bcf, slightly below a Reuters survey estimate of 80
    bcf. That put overall U.S. inventories at 2.521 trillion cubic
    feet, or just 3 percent below last year's record volume.
    Canadian export gas prices also dropped. Niagara, Ontario,
    spot gas for delivery into the U.S. Northeast fell 3 cents to
    average $6.57 per mmBtu, following a 17 cent slide on
    Thursday.
    Spot gas at Huntingdon-Sumas on the British
    Columbia-Washington border sank 23 cents to average $5.62 per
    mmBtu. Sumas fell 30 cents in the previous session.
    ($1=$1.05 Canadian)

    AECO forwards: 7/06/07 7/05/07
    Bal. July C$5.05-5.10 C$5.18-5.23
    August C$5.12-5.17 C$5.34-5.39
    Nov'07-Oct'08 C$6.93-6.98 N C$7.08-7.13
    N=Notional
    ((Reporting by Jeffrey Jones, editing by Peter Galloway;
    jeff.jones@reuters.com; Reuters Messaging:
    jeff.jones.reuters.com@reuters.net; +1 403 531-1624))
    Keywords: MARKETS CANADA NATGAS


    (C) Reuters 2007. All rights reserved. Republication or redistribution of
    Reuters content, including by caching, framing or similar means, is expressly
    prohibited without the prior written consent of Reuters. Reuters and the Reuters
    sphere logo are registered trademarks and trademarks of the Reuters group of
    companies around the world.
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