Pricewatch | 04 Oct 2022 | Gas Matters Today

European gas benchmark TTF settled at its lowest level since 22 July on Monday, with the fall pinned on mild weather and strong builds in gas storage levels.

The front-month TTF and NBP contracts remained in the red on Monday, with the former closing 9.8% lower at the equivalent of USD 48.84/MMBtu. The UK gas benchmark fell 14.6% to close at USD 33.53/MMBtu.

Mild and windy conditions have helped ease gas demand, in turn helping efforts to build gas storage levels. The EU’s gas storage sites were 89.32% full as of 2 October, according to GIE data. Current storage levels are well above Brussel’s target of having sites 80% full by 1 November.

US gas benchmark Henry Hub also closed at its lowest level since July, dipping 4.4% to close at USD 6.47/MMBtu. Monday’s loss was pinned on near-record gas production in the US and expectations of a stronger-than-expected build in domestic gas storage levels.

As for crude, Brent and WTI returned to the green on Monday amid reports suggesting OPEC+ is considering implementing its biggest production cut since the start of the Covid-19 pandemic. The crude cartel will hold a meeting on Wednesday and will consider cutting production by more than 1 million barrels/d, according to Reuters.

The front-month Brent contract – which rolled over to December on Monday – settled 1% higher compared to the close of the November contract on Friday. The November-dated WTI contract closed 5.2% higher at USD 83.63/barrel.

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.