Natural Gas Prices to Stay Low as Storage Levels Rise

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.

Click here for the full Financial Post report