The US natural gas bull run has stumbled even before winter fully arrives, as forecasts of warmer weather yesterday plunged benchmark Henry Hub by 4.4% to close the session at USD 2.59/MMBtu, a more-than six-week low. The December contract has lost 15% since it peaked at USD 3.03/MMBtu on 11 November 2020.
European gas hubs UK NBP and Dutch TTF were also deep in the red on Thursday, falling by 4.1% and 4.8% to settle at the equivalent of USD 4.87/MMBtu and USD 4.52/MMBtu, respectively. The Asian LNG price also continued falling, as CME’s January-dated JKM contract fell 2.8% to USD 6.25/MMBtu.
Crude oil prices softened slightly in yesterday’s session as near-term fears over Covid-19 lockdowns offset growing hopes of a Sars-Cov-2 vaccine being rolled out in the New Year. Brent and WTI closed at USD 44.20/barrel and USD 41.74/barrel, down by a fraction of a percent on the previous closing price.
The European carbon relinquished recent gains, as month-ahead ETS allowance (EUA) futures fell 3.1% to close at EUR 26.35/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.