Up some more! Natural gas markets rose for a fourth straight session to reach the highest price for a prompt month since mid-March. The prompt month reached as high as $4.40 USD/MMBtu before settling at $4.34 USD/MMBtu (2% gain), following an afternoon sell-off. This gain came despite forecasts indicating a significantly warmer than normal middle of November. In Ontario, temperatures are expected to drop into the negatives early next week, before bouncing back to around 5°C the following week, well above the 10-year normal.

Turning to western Canada, projected LNG Canada flows have dropped over the last few days as commissioning of Train 2 continues. In Shell’s quarterly earnings, they expressed the desire to have Train 2 launched by the end of the year. Canadian production is approaching the 2-year maximum, set last December, as Montney producers continue to complete more wells to capitalize on healthy AECO forwards. AECO will remain volatile as they’re beholden to the thinly balanced supply/demand question on whether production will outpace LNG demand. (PB)

Source: Criterion – Canadian Fundamental Natural Gas Report