Pricewatch | 07 Jun 2021 | Gas Matters Today

Only Subscribers can read the full Article

Oil prices closed at their highest level in over two years on Friday, with prices rallying on Monday morning amid expectations of stronger global demand for the remainder of the year.

The front-month Brent contract closed at USD 71.89/barrel on Friday – its highest close since May 2019 – with the marker hitting USD 72/barrel during trading on Monday morning. US crude benchmark WTI rallied by 1.2% to close at USD 69.62/barrel – its highest close since October 2018 – with WTI hitting the USD 70/barrel range during trading on Monday morning.

Prices continue to rally amid expectations of a strong recovery in demand, particularly in the US and Europe, as Covid-19 restrictions are lifted. OPEC’s decision to stick with production restraints through July has also supported the crude price rally.

Last week, OPEC said it expects oil demand to exceed supply in H2’21, with OPEC forecasting that by the end of the year demand will be just under 100 million barrels/d and supply will total 97.5 million barrels/d.

Gas prices also rallied, with US benchmark recording a 1.8% gain to close in the USD 3/MMBtu range for the fourth consecutive day. Henry Hub has been lifted by strong export demand and warmer weather, which is lifting domestic demand for gas.

European gas prices recorded marginal gains, with TTF and NBP closing 0.7% and 0.6% higher respectively to end the week.

The rally failed to lift the European carbon price, which hit a one-month low after settling at EUR 49.90/tonne.

Asian LNG marker JKM also recorded a marginal loss but remained in the USD 10.6/MMBtu range.

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.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.