Steve’s Weekly Update for Feb 16, 2015

Market bounces both ways Our local gas market has responded to the cold weather back East with a drop in the spot market day price and an increase in futures market pricing. Both movements are rather modest however so nothing to be too concerned about. We can interpret this as an excess of supply in […]

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Fortis One Step Closer to Common Rates

At the end of June the BCUC agreed to reconsider the Foris application to amalgamate its various rate territoroes into one provincial pool of customers. Thatwould mean that all customers would pay the same rates for delivery and gas supply and would pay very marginally different rates for midstream, aka pipeline and peaking costs. Of […]

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Is weather the difference?

The chart below shows a temperature chart that covers last year compared to this year. In a nutshell it tells us that last year it was much warmer than average almost everywhere, but especially in the East, where  most gas consumption happens.   This year it's been normal in the East and West but cooler […]

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Is the tank dry?

The storage chart shows the aggregate of natural gas in underground storage caverns. The red line is this year and the grey band is that range for the past seven years. We entered the gas year (Nov-Oct) at a level above the previous maximum and, because of a warm November and December, stayed above that […]

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A moment of truth?

Can anyone ever prove a market is "fixed" or biased? It's a tough one. Every once in a while though, we get a glimmer at the background when there is a slip up of some sort. The graphic below shows minute by minute tracking of natural gas trading on NYMEX. Note the sudden drop. What […]

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