European natural gas hubs made further gains on Wednesday, as July-dated contracts on UK NBP and Dutch TTF rose 11.4% and 9.9%, respectively, to close at the equivalent of USD 1.53/MMBtu and USD 1.76/MMBtu. US Henry Hub gained only 2.5% in the session, thereby further narrowing the ‘American premium’ for gas against both European hubs. The TTF-Henry Hub spread is now only USD 0.06/MMBtu. CME’s JKM futures, an indicator of Asian spot LNG, fell 0.2% to USD 2.10/MMBtu.
Crude oil prices remained firm on Wednesday, with July-dated Brent climbing 0.6% to edged closer to USD 40/barrel, having traded above that threshold during the session on reports that OPEC+ producers would extend their production cuts. The price dipped below USD 40/barrel on reports that next Thursday’s OPEC meeting will not go ahead. WTI yesterday gained 1.3% to USD 37.29/barrel. Both oil contracts were trading down by around 1-2% on Thursday morning.
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.