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Canadian natural gas rose for the first time in a week, rebounding from a six-week low, as warmer weather was forecast for the Great Lakes area.
July gas in Alberta advanced 4.5 percent after a 4.9 percent drop yesterday to the lowest level since April 26. The Midwest south to Texas and the Northeast will have temperatures 3 degrees Fahrenheit (2 Celsius) to 14 degrees above normal from June 17 to June 21, MDA EarthSat Weather in Gaithersburg, Maryland, predicted in a note to clients today.
“It’s just a warm-up in the forecast that’s probably causing us to give a bit of a bounce here, some short-covering and some people bottom-fishing,” Brad Florer, a trader at Kottke Associates LLC in Louisville, Kentucky, said in a telephone interview.
Alberta gas for July delivery gained 7.25 cents to C$1.69 a gigajoule ($1.56 per million British thermal units) as of 11:45 a.m. New York time. Gas traded on the exchange is shipped to users in Canada and the U.S. and priced on TransCanada Corp. (TRP)’s Alberta system. NGX gas is down 36 percent this year.
Natural gas for July delivery on the New York Mercantile Exchange rose 3.9 cents to $2.257 per million Btu at 11:52 a.m.
“Plenty of heat remains on tap for Great Lakes and the Ohio Valley back into parts of the Midwest in this period, with some of this heat moving into the interior Northeast and eastern Canada by late period,” Eric Wertz, a meteorologist at MDA EarthSat, said in the note.
The high in Chicago on June 20 is forecast to be 88 degrees Fahrenheit, 6 degrees above normal, according to AccuWeather Inc. in State College, Pennsylvania.
Volume on TransCanada’s Alberta system, which collects the output of most of the nation’s gas wells, was 16.1 billion cubic feet at 11:30 a.m. New York time.
Gas was flowing at a daily rate of 2.12 billion cubic feet at Empress, Alberta, where the fuel is transferred to TransCanada’s main line.
At McNeil, Saskatchewan, where gas is transferred to the Northern Border Pipeline for shipment to the Chicago area, the daily flow rate was 1.73 billion cubic feet.
There was a shortage of 237 million cubic feet in available capacity on TransCanada’s British Columbia system at Kingsgate. The system was forecast to carry 1.9 billion cubic feet today, or 12 percent above normal capacity of 1.67 billion.
The volume on Spectra Energy’s British Columbia system, which gathers the fuel in northeastern British Columbia for delivery to Vancouver and the Pacific Northwest, totaled 3 billion cubic feet at 10:35 a.m.
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