Natural gas prices shook off early declines Friday and rose in tandem with oil and other energy contracts as Canadian wildfires spread, increasing estimates of lost production.
Natural gas futures were down as much as 1.5% in early trading but rallied as reports said Canada’s wildfires were gaining ground, recently trading up 0.6% at $2.0880 a million British thermal units on the New York Mercantile Exchange.
As quoted in the publication:
Analysts were raising their estimates of Canadian oil production taken offline by the wildfires spreading in the Alberta oil sands region, to as much as 1 million barrels a day. Though reports haven’t yet said oil or gas facilities have been damaged by the fires, oil workers have been evacuated and sites have been shut down as a precautionary measure.
Canada is the largest exporter of oil and natural gas to the U.S., sending in 3.6 million barrels of crude and more than 240 billion cubic feet of gas per month, according to U.S. Energy Information Administration data.
The fires reversed otherwise bearish forces in the market. New weather forecasts pulled back from prior predictions of prolonged below-normal temperatures along the eastern U.S. seaboard into next week, and projected mild spring weather heading into late May.