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Canadian gas prices up as Midwest heat wave bears down

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Canadian natural gas prices soared as weather forecasters talked of a Midwest heat wave that is expected to last for a week, Bloomberg reported.

Prices gained 2.3 percent as demand for the power-plant fuel rose. Temperatures are expected to be higher than normal until July 24.

“A major heat event will continue into this period,” said MDA EarthSat Weather of Gaithersburg, Md., in a note to clients. “The core of the strongest heat will move from the Plains and Midwest early into the Northeast and mid-Atlantic around mid-period. Widespread highs well into the 90s to near 100 degrees will be common under the strong upper level ridge.”

Alberta gas for August delivery rose 8 cents to $3.52 per million British thermal units (Btu) this morning, according to Canadian Internet market NGX. Natural gas on the New York Mercantile Exchange (Nymex) rose 2.9 percent, or 12.5 cents, to $4.503 per million Btu.

Gas traded on the exchange goes to users in Canada and the United States. Canadian gas prices typically follow their U.S. counterparts on the Nymex.

Citing the weather service, Reuters reported that high temperature records in the United States have been tied or broken 882 times in July.

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