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,
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
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
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
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.
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
((Reporting by Jeffrey Jones, editing by Peter Galloway;
[email protected]; Reuters Messaging:
[email protected]; +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.