2 May 2024
Pricewatch | 05 Nov 2021 | Gas Matters Today
Publication date: 05 November 2021
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European gas prices returned to the red on Thursday amid increasing pipeline gas supply from Russia.
The front-month TTF and NBP contracts fell by over 4% on Thursday, with the UK gas benchmark closing at the equivalent of USD 25.56/MMBtu. The Dutch marker settled at the equivalent of USD 24.83/MMBtu.
The fall was pinned on rising gas flows from Russia, which increased by 15 MMcm/d day-on-day on Thursday, according to data compiled by EnergyScan.
Russian gas exports via the Yamal pipeline had ground to a halt earlier in the week – only restarting on Thursday. All eyes are on Monday as Gazprom is expected to start filling storage sites in Germany and Austria on 8 November. Should Gazprom start directing more gas to Europe’s storage sites next week, TTF and NBP could fall further.
Elsewhere, Asian LNG marker JKM closed 2.3% lower at USD 32.01/MMBtu. In the US, gas benchmark Henry Hub recorded a 0.8% gain to close at USD 5.72/MMBtu.
Oil prices fell on Thursday, despite OPEC and its allies agreeing at the crude cartel’s latest monthly meeting to stick with its current production quota – raising production by 0.4 million barrels/d monthly through to April 2022.
OPEC+’s decision came despite repeated calls by the Biden Administration for the crude cartel to increase supply in a bid to rein in rising prices – which have played a hand in increasing petrol prices in the US.
Brent closed 1.8% lower at USD 80.54/barrel, with the US benchmark settling 2.5% lower at USD 78.81/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.