Pricewatch | 16 Dec 2021 | Gas Matters Today

Only Subscribers can read the full Article

The European gas price bull run shows no sign of slowing, with TTF and NBP hitting fresh record highs on Wednesday.

The front-month TTF and NBP contracts closed at the equivalent of USD 43.65/MMBtu and USD 44.26/MMBtu respectively yesterday. Expectations of colder weather starting next week, coupled with dwindling gas storage levels continue to support European prices. Further support is being provided by nuclear power outages in France, which is expected to lead to an increase in gas and coal use in the power sector over the coming weeks.

On Wednesday EDF announced that had found faults in pipes in a safety system at its Civaux power plant. The French firm said it will shut two reactors at the plant and will also shut two reactors at the Chooz nuclear plant as it utilises the same type of reactors.

The rally on Wednesday saw the European markers settle at a record premium to US gas benchmark Henry Hub, which closed 1.5% higher at USD 3.8/MMBtu. TTF and NBP also increased their premium over Asian LNG marker JKM, which settled 0.3% higher at USD 35.87/MMBtu.

Following a two-day losing streak, the EU carbon price bounced back to settle 1.3% higher at EUR 80.5/tonne.

As for crude, prices were up 0.2% after the US Energy Information Administration (EIA) reported that US crude inventories fell by 4.6 million barrels last week – a level that was higher than expected.

Brent closed at USD 73.88/barrel, WTI settled at USD 70.87/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.