Dec. 24 (Bloomberg) -- Natural gas at Canada's largest trading point fell on forecasts for warmer weather and reduced demand during the holiday season.

Overnight lows in Toronto, Canada's largest city and the capital of Ontario, may climb to 30 degrees Fahrenheit (minus 1 degree Celsius), or 11 degrees higher than seasonal, a government forecaster said.

Calgary may be 21 degrees Fahrenheit, or about 14 degrees higher than typical, Environment Canada said in an outlook.

Ontario, Quebec and Alberta are the biggest domestic markets for the home-heating and power-plant fuel, mostly produced in the country's western provinces.

Many Canadian offices and businesses are closed tomorrow and Dec. 26.

Spot gas at AECO fell 2.5 cents, or 0.4 percent, to C$5.975 per gigajoule ($6.379 per million British thermal units) at 11:23 a.m. on Calgary-based Natural Gas Exchange Inc.'s NGX electronic energy market. It was the fourth day prices fell at the southern Alberta gas-trading center.

Canadian gas is considered weather sensitive because it is typically delivered almost immediately and consumed the next day.

Canada supplied about 16 percent of U.S. gas needs last year, according to U.S. Energy Department data.

To contact the reporter on this story: Ian McKinnon in Calgary at imckinnon1@bloomberg.net.

Last Updated: December 24, 2007 13:42 EST