21
May
2020

Pricewatch | 21 May 2020 | Gas Matters Today

Only Subscribers can read the full Article

Crude oil prices continued their recovery yesterday, as July-dated contracts on Brent and WTI gained around 3% on Wednesday to close at USD 35.75/barrel and USD 33.49/barrel, respectively. Most notably, the contango from front month WTI to August and September contracts is now less than a dollar, indicating the heavy premium placed upon storage capacity at Cushing has evaporated as demand returns and supply decreases.

US natural gas price Henry Hub fell in tandem with European benchmarks NBP and TTF on Wednesday, with all three losing around 3% - leaving the ‘American premium’ over European molecules practically unchanged. Henry Hub closed at USD 1.77/MMBtu, representing a premium of USD 0.45/MMBtu over UK NBP and USD 0.34/MMBtu over Dutch TTF.

CME’s front month JKM futures yesterday contract rolled over into July. The July contract yesterday fell USD 0.20/MMBtu to USD 2.20/MMBtu, although this price represents a 4.2% premium on the final closing price of the expiring June-dated contract.

Elsewhere, the European carbon price popped 6.5% to hit EUR 21.19/tonne, its highest price since 20 April 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.

Subscription Benefits

Our three titles – LNG Business Review, Gas Matters and Gas Matters Today – tackle the biggest questions on global developments and major industry trends through a mixture of news, profiles and analysis.

LNG Business Review

LNG Business Review seeks to discover new truths about today’s LNG industry. It strives to widen market players’ scope of reference by actively engaging with events, offering new perspectives while challenging existing ones, and never shying away from being a platform for debate.

Gas Matters

Gas Matters digs deep into the stories of today, keeping the challenges of tomorrow in its sights. Weekly features and interviews, informed by unrivalled in-house expertise, offer a fresh perspective on events as well as thoughtful, intelligent analysis that dares to challenge the status quo.

Gas Matters Today

Gas Matters Today cuts through the bluster of online news and views to offer trustworthy, informed perspectives on major events shaping the gas and LNG industries. This daily news service provides unparalleled insight by drawing on the collective knowledge of in-house reporters, specialist contributors and extensive archive to go beyond the headlines, making it essential reading for gas industry professionals.

Did you know that your Internet Explorer Browser is out of date?

Your MS Internet Explorer browser is out of date, and will not be fully compatible with our website. For best browsing experience we recommend that you upgrade your IE browser to a more recent version or use an alternative, more recent browser.