Pricewatch | 18 May 2021 | Gas Matters Today

European gas prices took a bearish turn on Monday, reflecting weakness in the carbon market, while Henry Hub rose 5% day on day, as warmer temperatures in the southern half of the US saw rising demand for air conditioning.

UK gas market NBP fell 2.2% from Monday, closing at the equivalent of USD 9.50/MMBtu, while the front-month Dutch TTF gas price settled at the equivalent of USD 9.37/MMBtu – a day-on-day drop of 1.9%.

The losses by the European gas markers reduced their premium over JKM, which remained unchanged at USD 9.13/MMBtu – a figure USD 0.24/MMBtu lower than TTF and USD 0.37/MMBtu lower than NBP.

Meanwhile, crude prices continued to rise, as the energy consumption outlook remained bullish in key markets such as the US post-lockdown, while demand from aviation is also expected to increase due to the resumption of international travel in some parts of the globe.  

The front-month Brent and WTI contracts were up by 1.1% and 1.4% respectively, settling at USD 69.46/barrel and USD 66.27/barrel.

However, concerns persisted over the impact a surge in Covid-19 cases in many parts of Asia could have on energy prices in coming weeks, with Japan recording 44,961 new infections in the week commencing May 10, a week-on-week increase of 9,159, according to World Health Organization (WHO) data.

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.