It may be a new week, but the downward trend for gas prices continues. The NYMEX front month settled at $2.81 USD/MMBtu, a $0.08 USD/MMBtu or 2.8% drop from Friday’s settlement. The weather continues to disappoint with no significant heating demand in the two-week forecast. Production remains slightly down from the record volumes of August, but still more than surplus to handle the LNG and shoulder season weather demands.   

In Alberta, we are already seeing the impact of the NGTL Eastgate constraint as AECO cash markets were negative for the day at a price of -$0.12 CAD/GJ. In other words, producers needed to pay consumers to take their gas from them. The impact on Dawn appears muted thus far, as it can source its supply from other regions in the US. (PB)