07
Sep
2021

Pricewatch | 07 Sep 2021 | Gas Matters Today

Only Subscribers can read the full Article

European gas prices hit a fresh record high on Monday, lifted by tighter supply as pipeline flows from Russia and Norway dipped at the start of the week. The gas price rally helped propel the European carbon price to a record high.

The front-month NBP recorded a 2.6% gain to start the week, which saw the UK gas benchmark settle at the equivalent of USD 18.55/MMBtu. As for TTF, it was up 2.5% to close at USD 18.39/MMBtu, meaning the NBP-TTF spread widened to USD 0.16/MMBtu.

Lower gas pipeline volumes into Europe prompted the rally on Monday, with flows from Russia into Germany – via the Mallnow entry point – halving during the morning.

The rally, along with lower wind power generation, helped lift the European carbon price to a fresh record high on Monday. The September-dated contract was up 1.6% on Monday to close at EUR 62.27/tonne.

CME’s API2 coal, JKM and Henry Hub front-month contracts remained unchanged on Monday due to the Labour Day public holiday in the US.

As for crude, prices fell 0.5% on Monday, with the slump pinned on Saudi Aramco cutting its contract prices for customers in Asia. The Saudi oil giant announced on Sunday that it will cut selling prices in October – for all oil grades sold to Asia – by USD 1/barrel. The move has raised concerns over demand.

The front-month Brent contract settled at USD 72.22/barrel with WTI closing at USD 68.93/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.

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.