GREY:BNPUF - Post by User
Comment by
gasguy63on Mar 01, 2014 2:25pm
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Post# 22268412
RE:BNP poised to break out to $18
RE:BNP poised to break out to $18AECO 5a daily index closed Friday at $7.43 it was up 8% for the week. Although NYMEX came down AECO basis tightened. BNP prod'n is in Alberta and AECO pricing is a more relevant proxy. There is record cold in Alberta this weekend so demand will be high however on Friday TCPL sent out a notification restricting export deliveries effectively pushing 1.5 Bcf back into the province which dampened domestic price enthusiasm (unless you needed Empress). All that being said AB storage is low and getting lower, mainline tport east will challenge AB to refill storage thereby maintaining a good floor on AB prices through the summer and pressure on next winter. Looks like Q2 and Q3 are hedged up but based on the last reported Q1 hedging level there may be an opportunity for an upside surprise. The market remains backwardated but this winters weather should keep prices at higher level then we've had for a few years. GLTA. GG