European gas prices hit a fresh four-month high on Wednesday as Gazprom throttled Nord Stream 1 flows to ~20% of the pipeline’s capacity.
Dutch gas benchmark TTF closed 2.6% higher at the equivalent of USD 60.82/MMBtu – marking its highest close in USD/MMBtu terms since 8 March. As for UK marker NBP, it closed 5.5% higher at the equivalent of USD 44.71/MMBtu – its highest close since 9 March.
The rally was prompted by Gazprom cutting NS1 flows to 33 MMcm/d – equivalent to ~20% of the pipeline’s capacity. Total Russian gas flows to Europe are now ~25% of pre-Covid levels for this time of year.
In the US, the August-dated Henry Hub contract fell by 3.4% to settle at USD 8.69/MMBtu ahead of the contract’s expiry on Wednesday.
As for oil, prices bounced back on Wednesday. Brent closed 2.1% higher at USD 106.62/barrel, with WTI up 2.4% at USD 97.26/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.