With relatively weak demand and large inventories of natural gas, Canadians can expect to pay less to heat their homes this winter, according to the winter forecast by the National Energy Board (NEB).
The NEB projected natural gas prices will be between US$4 to US$5 per million BTUs this winter, lower than the projected US$6 to US$9 per million BTUs last winter.
Sustained cold weather or a stronger than expected economic recovery could push prices above that range, but, on average, Canadians who heat their homes with natural gas will likely pay less this winter, the report said.
The natural gas energy market is expected to stabilize in 2010 after a small reduction in natural gas supply over the winter.
The NEB also projected crude oil prices to range between US$75 and US$80 per barrel over the winter.
With the price of home heating oil closely tracking the price of crude, average Canadian heating oil prices this winter are expected to be higher than last year when crude oil averaged about US$46 per barrel.