Natural gas prices seem to have gone crazy over the past few years, why?
Wholesale natural gas prices in Canada have become significantly more volatile over the past three to four years, relative to what used to be considered normal. This has been caused by a combination of factors including the increased use of natural gas for generating electricity and flattening domestic natural gas production. The surplus of natural gas that North America once enjoyed has been replaced with a market where demand and supply are much more closely balanced. In such a market, unexpected events such as extraordinarily cold weather can generate a high degree of volatility in natural gas prices.
