Pricewatch | 30 Sep 2020 | Gas Matters Today

Crude oil prices tumbled on Tuesday after enjoying a sustained period of stability. Brent and WTI both lost around 3% to settle at USD 41.03/barrel and USD 39.29/barrel, respectively, after the Covid-19 death toll surpassed 1 million people and tightening lockdown measures unnerved trading sentiment. Saudi Arabia has also been lowering prices for refining customers in the US and Asia, while Libya’s resumption of oil exports is also weighing on prices.

November-dated US gas benchmark Henry Hub became the front month yesterday. That contract fell 8.4% to USD 2.56/MMBtu, which still represents an almost 22% premium on the final closing price of the expiring October contract.

European gas hubs settled on Tuesday after Monday’s supply-driven leap. UK NBP gained 0.7% to close at the equivalent of USD 4.40/MMBtu, while Dutch TTF fell 0.6% to USD 4.22/MMBtu. CME’s November-dated JKM futures contract rose another 0.5% to close at USD 5.10/MMBtu threshold.

The European carbon price flipped back down on Tuesday, as month-ahead ETS allowance (EUA) futures fell 3.4% to close at EUR 26.76/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.