The European gas bull run came crashing down on Wednesday amid forecasts of milder weather for the region. Front-month UK NBP and Dutch TTF closed 15.8% and 17.8% lower respectively after surging on Tuesday to highs not seen since late 2018.
Wednesday also saw the Asian LNG bull run end as CME’s month-ahead JKM futures contract closed 5.7% lower to settle at USD 18.57/MMBtu. Like Europe, warmer weather is expected in Asia in the coming weeks, which is expected to reduce gas demand.
Crude prices mirrored gas, with the front-month Brent and WTI prices continuing to fall amid rising Covid-19 cases across the globe. WTI returned to the USD 52/barrel range, with Brent closing 0.9% lower to settle at USD 56.06/barrel.
The losses extended to the European carbon price, which closed 2.9% lower on Wednesday.
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.