04
Jan
2021

Pricewatch | 4 Jan 2021 | Gas Matters Today

Only Subscribers can read the full Article

The Asian LNG spot price surged over the Christmas and New Year break amid frenzied winter buying. CME’s JKM futures contract, which serves as a financial hedging instrument against the Platts JKM benchmark, gained 36% between Christmas Eve and New Year’s Eve. The February-dated CME contract rose from USD 10.53/MMBtu on 23 December to USD 14.30/MMBtu on 31 December, producing a chart spike that mimicked the soaring price of Bitcoin over the same period.

European gas hubs also surged during the chilly festive period, with month-ahead UK NBP gaining 12% over the same timeframe to settle at the equivalent of USD 7.70/MMBtu and Dutch TTF rising by 9.6% to USD 6.85/MMBtu. Both prices represent a near-doubling of hub prices recorded this time last year, during a mild northern hemisphere winter.

Oil prices defended recent highs, with Brent remaining above the critical USD 50/barrel threshold and WTI creeping up to that price point in shallow pre-New Year trading. API2 coal has risen steadily from the equivalent of USD 2.64/MMBtu to USD 2.77/MMBtu on New Year’s Eve, highs not seen since April 2019.

The European carbon price surged to a series of fresh all-time highs over the past week, achieving EUR 33.29/tonne on 28 December before coming off these highs to settle at EUR 32.57/tonne on New Year’s Eve.  

There was no commodity trading data published on 1 January due to the New Year break.

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 reserved.

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.