Pricewatch | 04 Feb 2021 | Gas Matters Today

The European carbon price hit an all-time high yesterday after rallying by 7% to close at EUR 37.38/tonne. The rally was prompted by Poland’s first carbon auction of the year, which netted prices above the market price, according to reports.

Whilst the February-dated ECX EUA futures contract stands at EUR 37.38/tonne, the December 2027 contract also closed over EUR 2 higher to settle at EUR 40.67/tonne. Traders have said they expect the European carbon price will keep rising as Brussels tightens emissions rules, with some suggesting the price could hit EUR 50/tonne in the coming years.

Oil prices surged to a fresh one-year high after the US Energy Information Administration released data showing US oil inventories fell to 475.7 million barrels last week – the lowest level since March last year. The rally was also prompted by news that OPEC+ is maintaining its supply cut agreement.

The month-ahead WTI contract rallied by 1.7% to close in the USD 55/barrel range. The front-month Brent contract also closed 1.7% higher to move into the USD 58/barrel range.

Gas prices fell on Wednesday. US natural gas benchmark Henry Hub fell by 2% to slip into the USD 2.7/MMBtu range. Across the pond, the front-month UK NBP price fell by 1.5%, with the month-ahead Dutch TTF price falling by 2.2% to settle at the equivalent of USD 6.29/MMBtu.

CME’s JKM futures contract fell for a third straight day, closing 0.8% lower at USD 8.37/MMBtu. 

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.