US gas benchmark Henry Hub spiked 4.3% to USD 2.74/MMBtu on Friday, its highest closing price since 6 November 2019, as Hurricane Delta forced widespread shut-ins of oil and gas production in the Gulf of Mexico. Forecasts of cooler weather driving heating demand in October also buoyed prices to their 11-month high.
The benchmark US Gulf Coast gas price is still trading at a steep discount to European hubs NBP and TTF, which fell marginally in Friday’s session. CME’s November-dated JKM futures contract rose 0.6% to USD 5.14/MMBtu, its highest settled price since 20 January 2020.
Crude oil prices softened on Friday on confirmation of a resumption of oil exports from war-torn Libya. Brent closed the session down 1.1% at USD 42.85/barrel and WTI fell 1.4% to USD 40.60/barrel. Both month-ahead contracts were trading down by around the same percentage on Monday morning.
The European carbon price fell further on Friday, as month-ahead ETS allowance (EUA) futures lost 2.4% to close at EUR 25.71/tonne – a six-week low.
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.