Further warming in the forecast sees the market correction continue today. The NYMEX front month dropped $0.27 USD/MMBtu (-5.6%) to $4.63 USD/MMBtu. This follows yesterday’s drop of $0.38 USD/MMBtu. The calendar strip (Jan-26 to Dec-26) fell an average of $0.12 USD/MMBtu.

Despite the weather forecasts projecting warmth two weeks from now, it is important to note that the upcoming week will be very cold in Canada. The prairies, in particular, will face extreme temperatures. Alberta will drop to below -25°C, Saskatchewan will approach -28°C, and Manitoba will see -24°C. Temperatures in Ontario will not be as drastic, but the province can expect sub -10°C days. As a result of the cold, demand will skyrocket, forcing storage to withdraw much larger than normal volumes. Traders can expect cash prices to spike from Dec 11th to Dec 16th. (PB)