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The Financial Post reported that natural gas prices are likely to stay low due to lower-than-expected draws on storage because of a mild winter heating season.
The Financial Post reported that natural gas prices are likely to stay low due to lower-than-expected draws on storage because of a mild winter heating season.
As quoted in the market news:
The surplus has caused natural gas prices to drop, creating what Mr. Egan calls a ‘buyers’ market’ for consumers, who use the commodity to heat their homes.
For producers, however, the effect could render some gas plays uneconomic and lead to a slowdown in drilling activity, AltaCorp Capital Inc. analyst Jeremy McCrea said.
Canadian Gas Association President Tim Egan stated:
Our storage levels are about 40 [billion cubic feet] higher than they were at the end of January last year.