European gas prices recorded strong gains on Monday after Gazprom opted against booking additional capacity via Ukraine for December. The strengthening gas prices in turn helped propel the European carbon price to a fresh record high.
The front-month TTF and NBP contracts closed over 5% higher day-on-day to start the week. The UK gas benchmark settled at the equivalent of USD 27.52/MMBtu, USD 0.77/MMBtu higher than the Dutch marker.
The rally was pinned on the latest capacity auction results and expectations of colder weather across much of Europe.
The strengthening gas prices helped push the European carbon price to a record high of EUR 65.92/tonne.
Across the pond, US gas benchmark rebounded on Monday, closing 4.7% higher at USD 5.02/MMBtu. A drop in gas production and robust LNG exports helped lift Henry Hub on Monday.
As for Asian LNG marker JKM, the front-month contract closed 0.1% higher at USD 31.61/MMBtu.
Oil prices diverged on Monday however prices were largely unchanged. Brent closed 0.1% lower at USD 82.05/barrel, with WTI up 0.1% at USD 80.88/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.