Pricewatch | 14 Oct 2021 | Gas Matters Today

Only Subscribers can read the full Article

European gas prices jumped on Wednesday, lifted by ongoing uncertainty over the level of gas exports from Russia to Europe in the coming months, and gains by Asian LNG marker JKM.

The November-dated TTF and NBP contracts rallied by 9.5% and 8.9% respectively, with the UK gas benchmark closing at the equivalent of USD 32.16/MMBtu – USD 0.41/MMBtu higher than the Dutch marker.

Ongoing uncertainty over the level of gas exports from Russia to Europe provided support to prices on Wednesday, with Putin – speaking at the Russian Energy Week conference – giving no indication as to when or if Russia would step in and increase gas exports to Europe in the coming months.  

Putin denied that Russia is limiting gas supplies to Europe in a bid to increase gas prices, with the president having last week stated that Russia is ready to step in and stabilise the energy market.

Gains by Asian LNG marker JKM also supported prices in Europe. The front-month JKM contract closed 0.6% higher on Wednesday to settle at USD 33.11/MMBtu.

In the US, Henry Hub closed 1.5% higher at USD 5.59/MMBtu. Forecasts for cooler weather supported the US gas benchmark.

Coal and carbon prices in Europe edged higher on Wednesday. The API2 coal contract closed 0.7% higher at USD 244.95/tonne. The carbon contract closed 0.2% higher at EUR 59.04/tonne.

As for crude, prices fell slightly on Wednesday.

Brent closed 0.3% lower at USD 83.18/barrel, with WTI down 0.2% at USD 80.44/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.

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.