Both European and US gas prices continued to slide on Thursday amid expectations of warmer weather driving down gas demand. Front-month UK NBP and Dutch TTF closed 1.1% and 0.9% lower respectively. Across the Atlantic, US benchmark Henry Hub fell by 1.9% to close in the USD 2.4/MMBtu range for the first time since late December 2020.
CME’s JKM futures contract rolled over from February to March. The March contract closed 5.8% lower day-on-day on Thursday.
Crude prices were mixed, with the front-month WTI falling by 0.3% to close at USD 53.13/barrel. The loss was attributed in part to a larger than expected increase in US crude inventories which increased by 2.6 million barrels last week – much higher than the ~1.2 million barrels increase expected by several analysts polled by Reuters. As for the front-month Brent crude price, it recorded a marginal gain of USD 0.02/barrel.
The European carbon price rallied 3.7% higher on Thursday to close in the EUR 34/tonne range for the first time since 12 January.
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.