Pricewatch | 14 Mar 2023 | Gas Matters Today

Only Subscribers can read the full Article

European natural gas futures lost some ground on Monday, following the price increases seen last week, as warmer weather is forecast and wind power output increased.

Both the TTF in the Netherlands and the NBP in the UK saw a 5.5% dip to USD 15.59/MMBtu and USD 15.20/MMBtu, respectively. Both contracts have therefore lost some ground from the price surge seen the week prior. Last week's bullish moves were driven by labour strikes in France that have brought LNG imports to a halt in that country, colder weather and new defects discovered at a French nuclear power plant and the potential knock-on effects this could have on power production.

“The market does however remain nervous, as the situation surrounding the French nuclear plants remains unresolved, and we could see further sudden price jumps if indeed new cracks to reactors are discovered,” Energi Danmark said in its morning report.

Meanwhile, wind generation was seen rebounding across the continent, with the share in power generation on Monday standing at 33.2% of the total.

JKM prices, which jumped alongside TTF and NBP on Friday, have seen a minor 0.6% rise to USD 14.25/MMBtu. Europe currently remains the more profitable destination for LNG.

In the US, Henry Hub continued the rebound, with a strong 7.2% surge to USD 2.61/MMBtu seen on Monday. Forecasts pointed to seasonally strong heating demand that more than offset losses witnessed last week.

Oil prices fell by over 2% on Monday following the collapse of Silicon Valley Bank in the US that “roiled equities markets and raised fears of a fresh financial crisis”, Reuters reported.

Brent crude futures settled down 2.4%, to USD 80.77/barrel, while WTI dropped 2.5% to USD 74.80/barrel – its lowest price since December 2022.

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.

Contact the editor:

Jana Sutenko
[email protected]

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.