Pricewatch | 07 Nov 2021 | Gas Matters Today

European gas prices bounced back Friday, as sentiment turned pessimistic over Russia delivering on its promise to supply additional volumes of gas into storage facilities in Germany and Austria on 8 November.

The front-month TTF and NBP contracts both rose by 1% day on day, with the UK gas benchmark closing at the equivalent of USD 25.83/MMBtu, while the TTF settled at USD 25.07/MMBtu.

Despite Russian gas flows into Europe via the Yamal pipeline resuming on Thursday, the trading week ended on a note of caution on whether Gazprom will indeed direct more gas to European storage sites on Monday.

Meanwhile, the Asian LNG marker JKM fell further, settling at USD 31.62/MMBtu, or down 39 cents day on day, while the US gas benchmark Henry Hub posted a marginal loss of 9 cents, closing the week at USD 5.62/MMBtu.

On the oil front, prices rebounded on Friday, as news of OPEC and its allies agreeing to stick with its current production quota – raising production by 0.4 million barrels/d monthly through to April 2022 – sunk in.

Brent closed 2.7% higher at USD 82.74/barrel, while the WTI settled 3.1% higher at USD 81.27/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.