15
Nov
2021

Pricewatch | 15 Nov 2021 | Gas Matters Today

Only Subscribers can read the full Article

US gas benchmark Henry Hub slumped to a two-month low on Friday, pushed lower by increasing gas production and expectations of mild weather across the Lower 48.

The December-dated Henry Hub contract fell by 7% on Friday to close at USD 4.79/MMBtu – its lowest close since 6 September.

Increasing gas production and mild weather weighed on Henry Hub. US gas production averaged 95 Bcf/d last week, up ~3 Bcf/d from October levels, according to reports.

Across the pond, European gas prices continued to rally amid supply concerns after Belarus’ President Alexander Lukashenko on Thursday threatened to cut off gas supplies via the Yamal pipeline, if the EU imposes sanctions in response to the migrant crisis on its border with Poland.

The TTF front-month contract settled at USD 25.38/MMBtu, rising by 1%, while the UK NBP was up 0.6% to USD 26.02/MMBtu.

The December-dated TTF and NBP contracts spiked on Monday ahead of the latest capacity auction results. However, prices started to fall after the results were announced at 11 am GMT.

Gazprom opted to book much less monthly capacity for December, with the Russian firm booking only 0.01 Mcm/d – of the 51.17 Mcm/d offered – at Mallnow and only 17 Mcm/d – of the 70.4 Mcm/d offered – at Velke Kapusany in Slovakia.

One trade source told Gas Matters Today that the market reaction to the auction result was “very, very muted” considering the lack of capacity bookings. The source suggests the auction result could indicate that some market participants expect the Gazprom-led Nord Stream 2 pipeline to come online next month.

As for crude, prices slipped on Friday amid a strengthening US dollar and reports suggesting the Biden administration may release some oil from the US Strategic Petroleum Reserve in a bid to tame rising fuel prices.  

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.