Canada Gas Fluctuates on Speculation Mild Weather Will Curb Use
Canada gas fluctuated as weather forecasts signaled mild average temperatures that may mean normal heating demand in the U.S.
Gas traded in a range between a decline of more than 1.6 percent and prices that were close to unchanged. Extra heating demand from a cold front affecting the East Coast will be offset by power outages there, while the West will have warmer-than- normal temperatures, according to Commodity Weather Group LLC of Bethesda, Maryland.
“We’re in that period of time where we don’t have a lot of weather demand yet,” said Carl Neill, a consultant with Risk Management Inc. in Atlanta. “You do have the cold front from Hurricane Sandy, but you do also have a tremendous drop in demand due to all the power being off.”
December gas in Alberta dropped 2.75 cents, or 0.8 percent, to C$3.26 per gigajoule ($3.10 per million British thermal units) at 12:55 p.m. New York time on NGX, a Canadian electronic exchange.
Natural gas for December delivery on the New York Mercantile Exchange gained 0.9 cent to $3.701 per million Btu.
The Energy Department said U.S. gas inventories rose by 65 billion cubic feet in the week ended Oct. 26 to a record 3.908 trillion cubic feet. Analysts estimates compiled by Bloomberg predicted a gain of 68 billion.
Sandy made landfall near Atlantic City, New Jersey, on Oct. 29, and knocked out power to 8.2 million people, the Energy Department said. There were still 4.7 million people without power today, the agency said.
Average heating demand in the U.S. will be 2 percent above normal over the next seven days, according to Weather Derivatives of Belton, Missouri.
Gas was flowing at a daily rate of 1.43 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line.
At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the rate was 2.09 billion cubic feet.
TransCanada’s British Columbia system at Kingsgate had 1.48 billion cubic feet per day of available capacity. The system was forecast to carry 1.24 billion cubic feet today, 46 percent of capacity.
The volume on Spectra Energy Corp.’s British Columbia system, which gathers the fuel in northeastern British Columbia for delivery to Vancouver and the Pacific Northwest, totaled 2.89 billion cubic feet at 11:50 a.m.
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