Pricewatch | 22 Oct 2021 | Gas Matters Today

Only Subscribers can read the full Article

European gas prices continue to yo-yo, with TTF and NBP falling on Thursday to erase all the gains from Wednesday’s session.

The front-month TTF and NBP contracts fell by over 5% on Thursday, with the UK gas benchmark closing at the equivalent of USD 30.58/MMBtu – USD 0.4/MMBtu higher than the Dutch marker.

Forecasts for mild weather and increasing wind power generation across Europe has helped tame European gas prices this week.

The softening JKM price has also weighed on European gas prices. The Asian LNG marker fell by 5.9% on Thursday, pushed lower by the China’s government ordering the nation’s coal mines to operate at full capacity. Beijing also approved new mines and called on major production hubs in the north of the country to lower prices. The measures should help lift domestic coal supply, which in turn could hit China’s LNG demand.

The slumping gas and coal prices in Europe failed to push the carbon price lower. The front-month EUA contract closed 0.3% higher at EUR 57.95/tonne.

In the US, Henry Hub closed 1.1% lower at USD 5.12/MMBtu. Mild weather and a strong build in US gas storage weighed on the US gas benchmark.

On Thursday, the US Energy Information Administration (EIA) reported a 92 Bcf injection into US gas inventories for the week ending 15 October. Gas storage levels in the Lower 48 now stand at 3,461 Bcf, 4.2% lower than the five-year average.

As for crude, prices fell by over 1% on Thursday. The drop in coal and gas prices weighed on oil prices – which were also pushed lower by the US National Oceanic and Atmospheric Administration’s latest forecast suggesting that US will experience a warmer than average winter. A mild winter will lower demand for heating oil.

Brent closed at USD 84.61/barrel, with WTI closing at USD 82.50/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.