European gas prices continued falling on Tuesday as markets continues being well-supplied and the weather forecast remains favourable.
The declines happened despite prospects of lower supply from Norway due to maintenance work and prices being at their lowest since mid-2021. There are currently no signals of major changes in market fundamentals in the near-term.
NBP saw a 1.3% fall to USD 9.20/MMBtu, while TTF in the Netherlands dropped by 1.6% to USD 10.13/MMBtu. Meanwhile, JKM remained flat at USD 11.05/MMBtu.
Flatness also ensued in the US, where Henry Hub stopped to take a breather on Tuesday with the price unchanged from Monday, at USD 2.38/MMBtu. According to analysts, this is the first indicator of the summer lull. Prices are expected to gain pace in a few months’ time, when summer enters full swing, and the northern hemisphere will enter a period of active demand.
Crude prices dipped on Tuesday as weaker-than-expected economic data in China and the US offset a forecast of higher global demand from the International Energy Agency (IEA), Reuters reported.
Brent settled lower at USD 74.91/barrel, while WTI was at USD 70.86/barrel, both down 0.4%.
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.