05
Jan
2021

Pricewatch | 5 Jan 2021 | Gas Matters Today

Only Subscribers can read the full Article

The Asian LNG spot price continued rising yesterday after a barn-storming bull run over the Christmas and New Year break, propelled by ongoing frenzied winter buying amid reports that a spot cargo changed hands for more than USD 20/MMBtu – reportedly the highest on record for the Platts JKM benchmark. CME’s JKM futures contract, a financial hedging instrument against JKM, yesterday rose 4.4% to USD 14.93/MMBtu having already gained 36% between Christmas Eve and New Year’s Eve.

European gas hubs are following suit on forecasts of imminent colder winter temperatures, with month-ahead UK NBP gaining 5.4% yesterday to settle at the equivalent of USD 8.06/MMBtu and Dutch TTF rising by 3.8% to USD 7.13/MMBtu. NBP has not traded above USD 8/MMBtu since January 2019.

Oil prices softened yesterday amid ongoing splits in the OPEC+ alliance over production cuts, with Brent edging closer to the critical USD 50/barrel threshold and WTI dropping below USD 48/barrel. However, both were trading up by more than 1% on Tuesday morning.

The European carbon price surged to a fresh all-time high yesterday of EUR 33.56/tonne, surpassing the previous record of EUR 33.29/tonne achieved on 28 December. The start of the new ten-year trading phase yesterday was characterised by renewed speculative buying, spurred by the EU’s recent decision to target at least 55% emissions reductions on 1990 levels by 2030.

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.