Oil prices staged a recovery on Wednesday after stumbling to three-month lows on Tuesday. The front-month Brent price closed 2.5% higher to settle at USD 40.79/barrel, with WTI settling 3.5% higher to close at USD 38.05/barrel. The rally was muted by the US Energy Information Administration (EIA) once again lowering its oil demand growth projections for 2020 in its latest short term outlook, with rising Covid-19 cases globally also weighed on the price increase.
US natural gas benchmark Henry Hub stopped the rot, closing 0.3% higher. European gas hub TTF continued to slide, with the October-dated contract closing 0.2% lower. The UK NBP front-month contract recorded a marginal gain of 0.2%. CME’s JKM futures contract could not sustain gains from Tuesday, with the marker closing 1.6% lower.
The European carbon price rallied, with the month-ahead futures contract for ETS carbon allowances (EUAs) closing 1.5% higher to settle at EUR 27.19/tonne.
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.