Higher demand and hotter summer did not make natural gas price rise

Commodities analysts were surprised this week as with higher demand and hotter summer temperatures bullish calls still prevailed. 22.Jun.16 11:21 PM By Anastasia Sutulova Photo Toinnov.com    410

Tuesday, AECO natural gas prices ended up above $2 per thousand cubic feet. It was in the first quarter when AECO prices rose above this level last time. That time, the prices went up because of warm winter temperatures, which caused less demand for natural gas to heat homes. Nevertheless, more gas than coal is burnt for utilities. During hot summer, many people use air conditioners, which leads to a bigger utility bill and surge in natural gas demand. While AECO prices rise above $2 per mcf, Western Canada-sourced gas is still sold with a discount. Such situation is adding volumes of relatively cheaper Canadian gas being exported to the U.S. markets.

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