US gas benchmark Henry Hub relinquished some recent gains yesterday, with the front month contract falling 4.3% to hit USD 2.76/MMBtu. The contract is still up almost 6% since this time last week on a strong recovery in US Gulf Coast LNG exports and cooler winter weather forecasts.
European hubs fell in tandem with Henry Hub, with NBP and TTF both losing more than 2% to settle at USD 4.91/MMBtu and USD 4.68/MMBtu. CME’s November-dated JKM futures contract rose 0.2% to hit USD 5.15/MMBtu, still its highest settled price since 20 January 2020.
Crude oil prices found support on Tuesday, with Brent closing the session up 1.7% at USD 42.45/barrel and WTI rising 2% to USD 40.20/barrel. Both month-ahead contracts were trading up down marginally on Wednesday morning.
The European carbon price resumed its descent on Tuesday, as month-ahead ETS allowance (EUA) futures fell 2.6% to close at EUR 25.21/tonne – the lowest closing price for ICE’s front-month EUA contract since 27 July 2020.
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.