Crude oil prices rose strongly on Friday amid hopes that a Democrat-controlled US Senate would pass a stimulus bill, and following Saudi Arabia’s surprise production cuts announcement. Brent rose 3% to USD 56/barrel and WTI rose 2.8% to USD 52.24/barrel, but both were trading down by around 1% on Monday over fears that soaring Covid-19 infection rates in China and around the world would weigh on fuel demand.
Futures contracts on European gas hubs NBP and TTF rose by more than 4% on Friday to settle at the equivalent of USD 8.22/MMBtu and USD 7.23/MMBtu as cold winter weather continues to drive heating demand for natural gas. CME’s February JKM LNG futures contract was unchanged at USD 17.25/MMBtu, an all-time high, while US benchmark Henry Hub dipped by 1.1%.
The European carbon price also hit a fresh all-time high of EUR 34.80/tonne on Friday after rising 0.5%.
Front-month futures and indexes at last close with day-on-day changes (click to enlarge):
Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights reserved.