Albertans got a taste of summer over the past few days, and Dr. Deena Hinshaw recommended everyone get outside to enjoy the fresh air while properly maintaining social distance. The warmer weather led to slightly higher settles this week of $30.56/MWh. The grid continues to be well supplied as demand destruction continues to grow. The forward curve traded down again this week as low oil price has raised many concerns in Alberta.
Gas prices averaged $1.82/GJ, a 5% decrease week over week. As it starts to warm up, gas demand will continue to decrease. AECO forwards have continued to trade up, especially balance of year with uncertainty over supply.
This week, oil prices crashed to the lowest level’s since pre-2000. Western Canadian Select traded under $0/barrel and producers continue to cut their budgets and shut in production trying to weather the storm. The good news this week was that Federal funding was announced for orphan wells, creating jobs predominantly in Alberta.