It’s definitely summer weather this week with heat warnings across the province. Yesterday price settled $123.40/MWh and there was a new summer peak demand record set of 10,880MW! The week settled 38% higher than the previous at $48.13/MWh. Forwards remain steady.
Gas prices are up 24% week over week at $1.30/GJ. There is continued production strength in July and relatively weak demand. This continues to push greater volumes of gas into storage although storage continues to run at a deficit to last year. The forward curve is still flat with little new market information.
Premiere Doug Ford has elected to halt carbon-pricing in Ontario – which may have a significant impact on prices for companies and customers. This order follows the removal of the cap-and-trade program and other green programs that were funded by carbon-pricing. Ford said in a press release that by cancelling these programs it would “result in lower prices at the gas pump, on your home heating bills and on virtually every other product that you buy.”