12
Jun
2020

Pricewatch | 12 Jun 2020 | Gas Matters Today

Markets, International

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Crude oil prices plunged by over USD 3/barrel on Thursday, with front-month prices falling on US oil inventories hitting a record high and renewed concerns regarding demand destruction as Covid-19 cases increased globally. Month-ahead Brent settled at USD 38.55/barrel – marking the first time Brent has closed below USD 40/barrel in four days, with the front-month WTI closing at USD 36.34/barrel. The European carbon price fell 2.8% to EUR 22.21/tonne, while the API2 price of coal in Rotterdam fell 0.9% to the equivalent of USD 1.77/MMBtu.

Whilst oil tumbled, gas prices flourished on Thursday. European gas prices continued to rally, with front-month contracts on UK NBP and Dutch TTF increasing by 6% and 4% respectively in USD/MMBtu terms. The gains outpaced those of US gas benchmark Henry Hub – settling 1.9% higher at USD 1.81/MMBtu – which helped to soften the ‘American premium’. The ‘Asian premium’ over both US and EU benchmarks also fell, as CME’s JKM futures remained at USD 2.07/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.

Contact the editor:

Eric Thorp
[email protected]

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