29 April 2024
Pricewatch | 18 Jun 2021 | Gas Matters Today
Publication date: 18 June 2021
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The crude price bull run ended on Thursday, with the slump pinned on a strengthening US dollar.
The front-month Brent contract failed to extend a seven day bull run – which had seen Brent close in on USD 75/barrel – after slumping by 1.8% on Thursday to close at USD 73.08/barrel. As for WTI, the US crude benchmark fell by 1.5% to close at USD 71.04/barrel.
Crude prices crashed amid a strengthening US dollar, with the dollar soaring after the US Federal Reserve indicated that it may hike interest rates twice by the end of 2023 – much earlier than some anticipated.
The crude price drop was however stunted by bullish forecasts for a recovery in global crude demand during H2'21.
Whilst crude prices slipped, European gas prices rebounded, with the front-month TTF and NBP contracts rallying by 1% and 0.7% respectively. However, on a USD/MMBtu basis, European gas prices fell by 0.7%.
US gas benchmark Henry Hub continued to rally, closing 0.1% higher.
As for Asian LNG marker JKM, the front-month contract remained unchanged for a third straight day.
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.