Birchcliff Energy Ltd T.BIR

High demand triggers large storage withdrawals from Dawn

[fergus2]

Canadian Observer - High demand triggers large storage withdrawals from Dawn

Storage withdrawals in eastern Canada have reached a new high this season, posting an average high of 3.8 Bcf/d over the past three days and ...reaching a high of 4.0 Bcf this past Wednesday. Withdrawals of this size typically only occur a few times a year and usually happen in January during peak demand days. Demand in eastern Canada has averaged 6.0 Bcf/d during this period, which includes a high of 6.4 Bcf/d for today's flow date. Canadian exports into the Northeast region have also peaked, averaging 1.5 Bcf/d during the three-day span. Each of these fundamentals have led to a large increase in storage withdrawals. Inventory at Dawn currently stands at 176 Bcf, which is 40 Bcf below the five-year average. With another three months left in the withdrawal season, this could leave Dawn inventory in the same situation as last season when inventory levels were 50 Bcf below the five-year average, which caused strong upward pressure on Dawn cash basis. Dawn basis is up $0.19 to stand at $0.36 for today's flow date, which is near the high for this winter season thus far.less

12/12/2013 | 5:57 AMCanadian Observer (Daily)