UNG - Is Henry Hub (New York Mercantile Exchange) about $9.40 MBTU GAS - Is AECO (Calgary Natural Gas Exchange) about $7.80 MBTU
Calgary prices are not undervalued, they always sell at discount to New York since supply is higher relative to demand, because Alberta is net exporter while New York is a net importer. Making the discount a structural issue, like the difference between WTI and Brent prices due to sulfur content. Both will move in the same direction. The one which will preform relatively better, will be the one where the supply and demand fundamentals deteriorate worst relative to the other.
GAS does not trade in the US.
Mistake: Larry you measured Natural Gas prices in MCF they are actually priced in MBTU. www.nymex.com/ng_fut_d...
For More Analysis Visit: tarik.ca A Canadian Financial Blog
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UNG - Is Henry Hub (New York Mercantile Exchange) about $9.40 MBTU
Mar 03 09:14 am
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GAS - Is AECO (Calgary Natural Gas Exchange) about $7.80 MBTU
Calgary prices are not undervalued, they always sell at discount to New York since supply is higher relative to demand, because Alberta is net exporter while New York is a net importer. Making the discount a structural issue, like the difference between WTI and Brent prices due to sulfur content. Both will move in the same direction. The one which will preform relatively better, will be the one where the supply and demand fundamentals deteriorate worst relative to the other.
GAS does not trade in the US.
Mistake: Larry you measured Natural Gas prices in MCF they are actually priced in MBTU. www.nymex.com/ng_fut_d...
For More Analysis Visit:
tarik.ca
A Canadian Financial Blog