Im in Ontario, but this relates to all of us. From my buddy who is CEO of a Gas supply company:
Things have been pretty wild in the gas market this year. We've seen some unprecedented pricing primarily driven from crazy high Euro pricing and low production in North America. The short term rates are really high through the winter ($7.00/Gj) and still really high on a 1 year term ($6.00/Gj range). The overall outlook is that pricing should come back down ($4.00/Gj) if we see the winter weather hold off. At this point all weather outlooks are calling for La Nina type conditions with lots of snow but not overly cold temperatures. If that situation holds our model shows pricing dropping back to the $4.00/Gj range and that would make future hedging prices drop accordingly. The advise we've been giving to most of our clients is, if they're not fixed currently, to try and hold out through the big wave we're seeing and try and lock in on the other side once prices come off.
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