Canadian natural-gas prices may rise for a second day as warmer-than-normal weather in the U.S. increases demand for the fuel to generate electricity for air conditioning.
In the U.S. West, the third-largest consuming region for Canada's gas exports, cooling demand will be 61 percent above normal by June 3, according to Weather Derivatives. Temperatures in Bakersfield, California, will reach 102 degrees Fahrenheit (39 Celsius) on June 4, 14 degrees higher than normal, AccuWeather.com said.
“California will turn very warm and hold there,'' David Salmon, a forecaster at Weather Derivatives, said in a note. “The desert Southwest will be quite the hot spot too.''
Spot gas at EnCana Corp.'s AECO C hub in Alberta, the nation's largest trading point, fell 11 cents to C$5.20 per gigajoule ($4.98 per million British thermal units) yesterday.
On Calgary-based Natural Gas Exchange Inc.'s NGX electronic energy market, spot gas at AECO gained 14 cents to C$5.40 per gigajoule.
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