European gas prices continued to yoyo on Monday, with prices plummeting amid a technical sell off and an improving supply outlook.
The month-ahead TTF and NBP contracts fell by ~5.5% to start the week, with the loss erasing some of the gains by the markers on Friday. The UK marker settled back in the USD 11/MMBtu range, with TTF closing just above USD 12/MMBtu.
Monday’s slump was attributed to a technical sell off and an improving supply outlook, with the Yamal pipeline returning to service after planned maintenance.
The losses weighed on the European carbon price, which fell by 4.7% to close in the USD 51/tonne range – its lowest close since 18 June.
Whilst gas prices in Europe tumbled, prices in Asia and the US rallied. Asian LNG marker JKM recorded a minor gain to settle at USD 13.01/MMBtu. In the US, Henry Hub returned to the USD 3.7/MMBtu range after rallying by 2%.
Brent and WTI both fell by ~0.5% on Monday amid concerns that Covid-19 variants could scupper the global economic recovery. However, the tight supply outlook stemmed the loss.
The front-month Brent contract remained in the 75/barrel range and the US benchmark remained in the USD 74/barrel range.
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.