Alberta extends oil output cuts

Fall seems to be in the air and if it doesn’t feel like it just yet to you – hold onto your hats. Calgary and surrounding
area was issued a frost warning overnight reminding us all just how fast this summer went and how close winter
really is. With the cooler temperatures, power prices settled at $37.13 – down 14% compared to last week. With
slightly cooler temperatures forecasted until the end of the work week, Wind generation is expected to be volatile.
Forwards remain relatively flat to slightly declining week over week.

Gas prices remain largely unchanged at $0.53/GJ compared to $0.56/GJ last week. Western Canadian storage
injections continue to remain low which may lead to higher prices in the winter.

Alberta is extending its oil output cuts by a year. The program which was slated to finish at the end of this year will
now wrap up at the end of 2020. Canadian heavy crude prices tanked to a record low of $14 last year. Production
cuts sent prices to a high of $56/barrel but have since lost about 23% to settle at $43 last week.