European gas prices continued to rally on Friday, extending their premium over Asian LNG marker JKM.
The strengthening European carbon price – which hit a record high of EUR 42.77/tonne on Friday–helped lift gas prices on Friday, along with forecasts of colder weather for Europe. Front-month UK NBP and month-ahead Dutch TTF both rallied by 1.6% on Friday to settle at the equivalent of USD 6.61/MMBtu and USD 6.46/MMBtu respectively.
The strengthening European gas prices are starting to push CME’s JKM futures contract higher, with the price closing 0.2% higher on Friday to settle at USD 6.07/MMBtu.
The rally by NBP and TTF, coupled with the tepid gain on JKM, saw TTF’s premium over JKM increase to USD 0.39/MMBtu at the end of the week, with NBP’s premium standing at USD 0.54/MMBtu.
In the US, gas benchmark Henry Hub fell by 2.5% but remained in the USD 2.6/MMBtu range.
Oil prices failed to maintain gains recorded on Thursday, with the front-month Brent and WTI contracts falling by 0.6% to settle at USD 69.22/barrel and USD 65.61/barrel respectively.
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.
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