Brent crude surged 5.8% to USD 42.30/barrel and WTI rose 5.7% to USD 39.55/barrel on Friday in anticipation of Saturday’s OPEC+ meeting, in which oil producing nations agreed to extend their production cuts for another month. August-dated Brent and July-dated WTI, the front-month contracts, were both trading up by more than 1% on Monday.
The ‘American premium’ for gas was vanquished on Friday, as front-month Henry Hub fell 2.2% to USD 1.78/MMBtu and Dutch TTF rose 5.9% to the equivalent of USD 1.89/MMBtu. This marks the first time that front-month TTF has settled above Henry Hub since 30 April 2020. Month-ahead UK NBP rose 8.6% in Friday’s session to hit USD 1.76/MMBtu, just two cents below Henry Hub.
The European carbon price rallied 4.7% in the session to EUR 23.17/tonne, its highest closing price since 11 March 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.