Pricewatch | 19 Nov 2021 | Gas Matters Today

The European carbon price hit a fresh record high on Thursday, aided by strengthening gas prices.

The December-dated EUA contract closed 2.9% higher at EUR 69.10/tonne. The carbon price was supported by strengthening gas prices.

The front-month TTF and NBP contracts closed 0.5% and 0.4% higher respectively on Thursday. NBP settled at the equivalent of USD 32.34/MMBtu, with TTF closing at USD 31.68/MMBtu.

Asian LNG marker JKM increased its premium over the European gas benchmarks as the front-month contract rolled over to January. JKM closed at USD 37.57/MMBtu, 18.8% higher compared to the final day of trading of the December-dated contract. Compared to the close of the January contract on Wednesday, the marker closed 0.75% higher on Thursday.

In the US, Henry Hub bounced back and edged closer to USD 5/MMBtu after settling 1.8% higher at USD 4.90/MMBtu. A dip in production, coupled with robust US LNG exports helped lift Henry Hub on Thursday. 

Oil prices rebounded, with Brent up 1.2% and WTI posting a 0.1% gain. Rising Covid-19 cases in Europe could weigh on prices in the short-term, with Austria announcing on Friday that it will impose a nationwide lockdown starting on 22 November.

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.