European gas prices continued to fall on Friday amid profit taking. While TTF fell, Asian LNG marker JKM closed out the week in the green, cutting the Dutch gas benchmark’s premium.
The front-month TTF contract fell by 3.6% on Friday to close at the equivalent of USD 57.08/MMBtu. The front-month NBP contract rolled over to September, with Friday’s close up compared to the close of the August contract on Thursday. However, Friday’s settlement of GBP(pence) 351.92/th was GBP 21.93/th lower than the close of the September contract on Thursday.
The losses were pinned on profit taking, with fundamentals remaining unchanged – Russian flows remained stable, with exports via Nord Stream 1 at ~33 MMcm/d.
TTF was rallying on Monday morning after Gazprom announced on Saturday that it had stopped supplying gas to Latvia “due to violation of the conditions for gas withdrawal”.
While gas prices in Europe tumbled, JKM edged higher, with the front-month contract settling up 1.6% higher at USD 42.23/MMBtu. The result saw TTF's premium fall to USD 14.85/MMBtu.
In the US, the September-dated Henry Hub contract bounced back, settling 1.2% higher at USD 8.23/MMBtu. The marker was lifted by forecasts of hot weather heading into August and lingering concerns over gas production growth.
As for oil, prices closed out the week in the green. Brent was up 2.7%, with WTI settling 2.3% higher day-on-day.
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.
Related Stories
-
29Jul2022Pricewatch | 29 Jul 2022 | Gas Matters Today
28Jul2022Pricewatch | 28 Jul 2022 | Gas Matters Today
27Jul2022Pricewatch | 27 Jul 2022 | Gas Matters Today