More clear blue water opened between US and European gas benchmarks on Tuesday. Front-month Henry Hub fell 1.6% to USD 1.64/MMBtu while UK NBP gained 8.5% to close at the equivalent of USD 1.88/MMBtu, hiking the US-UK spread four-fold. Dutch TTF rose 6.1% to USD 1.93/MMBtu, increasing the Europe-US spread by 98%. The US-Asia spread also widened, albeit less notably, as CME’s JKM futures gained 2.2% to close at USD 2.30/MMBtu.
Crude prices could not sustain recent gains, with global benchmark Brent and US benchmark WTI yesterday falling 1% and 0.9% to close at USD 42.63/barrel and USD 40.37/barrel, respectively. But this comes at the end of a spectacular bull run that has seen WTI increase almost 2.5-fold in the last two months, while Brent has more than doubled over that period.
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.