Oil hit a fresh 13-month high on Monday, with the front-month WTI price settling in the USD 60/barrel range. The month-ahead Brent price recorded a gain of USD 0.87/barrel to settle at USD 63.30/barrel.
The crude price rally was driven by major production curtailments in the US Lower 48, with oil production in Permian shale play reportedly down by 1 million barrels/d on Monday. The US Gulf coast is being gripped by a severe winter storm which has shut-in large amounts of oil production in Texas as the kit deployed in the state’s shale basins is struggling to operate at such cold temperatures.
Front-month European gas prices returned to the red. The month-ahead UK NBP fell by 6.9%, and the month-ahead Dutch TTF price fell by 6%, with both benchmarks settling in the USD 5/MMBtu range fort the first time since December 2020.
A public holiday in the US on Monday meant that the CME’s month-ahead JKM, Henry Hub and AP12 coal contracts remained unchanged to start the week.
The European carbon price fell from the record high set on Friday, closing 1.3% lower to settle at EUR 39.47/tonne.
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.