European gas benchmark TTF settled at its lowest level since 22 July on Monday, with the fall pinned on mild weather and strong builds in gas storage levels.
The front-month TTF and NBP contracts remained in the red on Monday, with the former closing 9.8% lower at the equivalent of USD 48.84/MMBtu. The UK gas benchmark fell 14.6% to close at USD 33.53/MMBtu.
Mild and windy conditions have helped ease gas demand, in turn helping efforts to build gas storage levels. The EU’s gas storage sites were 89.32% full as of 2 October, according to GIE data. Current storage levels are well above Brussel’s target of having sites 80% full by 1 November.
US gas benchmark Henry Hub also closed at its lowest level since July, dipping 4.4% to close at USD 6.47/MMBtu. Monday’s loss was pinned on near-record gas production in the US and expectations of a stronger-than-expected build in domestic gas storage levels.
As for crude, Brent and WTI returned to the green on Monday amid reports suggesting OPEC+ is considering implementing its biggest production cut since the start of the Covid-19 pandemic. The crude cartel will hold a meeting on Wednesday and will consider cutting production by more than 1 million barrels/d, according to Reuters.
The front-month Brent contract – which rolled over to December on Monday – settled 1% higher compared to the close of the November contract on Friday. The November-dated WTI contract closed 5.2% higher at USD 83.63/barrel.
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.