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SAN FRANCISCO, Nov 8: Canadian benchmark spot natural gas prices fell on Friday on lighter weekend energy demand and weaker US physical gas prices, reversing the previous day’s gains.
Despite the loss, traders said cold weather was likely to linger in key Canadian market regions well into next week, providing underlying price support.
Spot gas at the AECO storage hub in southeastern Alberta shed about 5 Canadian cents to average C$5.24 a gigajoule after rising 8 cents Thursday.
Daytime temperatures in southern Alberta were forecast between 0 degrees Celsius (32 Fahrenheit) on Monday and -3 C (27 F) Tuesday, according to Environment Canada. The normal high for this time of year is 4 degrees C.
In US markets, weekend gas at Henry Hub, the NYMEX delivery point in Louisiana, tumbled 26 cents, or 5 per cent, on average to $4.48 per million British thermal units (mmBtu) after spiking 18 per cent the two previous sessions.
In NYMEX, the spot December contract rose about 5 cents to settle at $4.708 per mmBtu on technical buying. The contract lost about 24 cents Thursday.
In Canadian export markets, gas at Niagara in southern Ontario, shipped mostly to the US Northeast, fell 21 cents on average to $5.06 per mmBtu, after rising 23 cents on Thursday.
Gas at Huntingdon-Sumas on the British Columbia-Washington border fetched $4.37 per mmBtu, down 10 cents on average on the day after rising 17 cents Thursday.
Early estimates for next Thursday’s weekly EIA gas inventory report call for a build in the 30 bcf to 35 bcf area compared with a 48 bcf withdrawal the same week last year.
EIA storage data released Thursday showing an injection last week of 34 bcf took total US gas storage to 3.155 tcf, well-above the 3 tcf comfort level considered necessary to meet normal winter needs.
OTTAWA: The future of a bill introduced one day ago with much fanfare by Prime Minister Jean Chretien that would make it easier for cheaper drugs to combat HIV/AIDS, tuberculosis and malaria to developing countries was cast in doubt Friday.
In its last decision before closing for — at least officially — a one-week break, the House of Commons refused to rush the bill through all its formal stages.
Canada claims to be the first country to introduce such legislation in the wake of a World Trade Organization agreement in August for developed nations to allow prescription drugs and their generic equivalents to be sold cheaply to many countries in Africa and Asia.
But many members of parliament, including members of the governing Liberal Party, believe next week’s one-week recess might be extended to three months.
Depending on how such an extension is implemented, all outstanding bills could fall and would have to be re-introduced.
That would mean a delay of several months for the legislation.—Reuters/AFP
