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A Brave New World
There was a heft withdrawal of 190 bc on natural gas inventories over the last week or so. The trend in February of falling natural gas forward term prices is now picking up momentum. The fall is more pronounced for Canadian natural gas prices and the dollar is gaining ground on the U.S. dollar over the February stretch.
What has trumped the influence of the aforementioned significant withdrawal to last week’s inventory? You guessed it, weather forecasts. U.S. forecasters have released updated forecasts for March temperature expectations with the most important forecast, for the major northeast U.S. natural gas consuming region, reporting milder than previously anticipated temperature ranges.
How should we put the last three weeks into perspective? Check out the Weekly Energy Report. Sign up by sending you’re mail to info@en-pro.com.
On the Ontario electricity front – 2010 seems to be the dawn of a Brave New World. Although economic analysts seem to agree that there is a light at the end of the tunnel, the general consensus is that the staples of Ontario’s manufacturing economy will not rebound to the heights reached in the previous decade. Going forward, Ontario’s contribution to the North American auto market will undoubtedly shrink and expectations are that Ontario production will drop to represent 12% of North American production. The impact of the recession has southern Ontario’s electricity load more than 15% below pre-recession levels, the drop is closely related to the automotive industry’s sharp loss in production over this period.
What does this mean to Ontario’s economy and more importantly the outlook for business? And how will demand levels in Alberta impact the country? Read En-Pro’s Weekly Energy Report to find out more.
By: Roger McKnight, Senior Petroleum Advisor