For the first time in ten weeks, the price of natural gas fell below five dollars U.S. yesterday, driving down the share values of Canadian natural gas producers.
Gas for March delivery closed down 15 cents US, at $4.89 cents per million BTU on the New York Mercantile Exchange.
Milder forecasts for the U.S. Midwest in recent days have hurt prices and so has the U.S. Department of Energy’s latest report last week.
It showed natural gas supplies had risen 2.7 per cent above the five-year average, with about six weeks to go before the end of the winter withdrawal period for natural gas.
What impact if any, this has on oil and gas rights sales, remains to be seen but we could get a local indication very soon as the February sale in this area is scheduled for tomorrow.
There will also be two March auctions of drilling rights in Alberta but regardless of prices they’re expected to be big sales, thanks to increased interest in a long term shale gas play with boundaries now moving further north into the Peace River Arch.