4 May 2024
Pricewatch | 16 May 2022 | Gas Matters Today
Publication date: 16 May 2022
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European natural gas prices fell back into the red on Friday, with robust supplies pushing prices lower.
The front-month TTF and NBP contracts closed 9% and 15.1% lower respectively on Friday. The Dutch marker settled at the equivalent of USD 29.56/MMBtu, with the UK benchmark closing at the equivalent of USD 18.18/MMBtu.
Robust pipeline flows from Russia weighed on prices, with TTF falling on Monday morning amid reports suggesting the European Union has drafted a plan for European gas buyers to pay for Russian gas without breaching sanctions.
Across the pond, US gas benchmark Henry Hub also fell, closing 1% lower at USD 7.66/MMBtu.
As for Asian LNG marker JKM, the front-month contract dipped, settling 0.4% lower at USD 23.43/MMBtu.
Crude prices rallied at the end of the week, with record gasoline prices in the US helping lift crude marker WTI. Prices were also supported by reports suggesting that China is set to ease Covid lockdown measures. The easing of measures is expected to help lift China’s demand, with the move coming at time when the European Union is looking to finalise a ban on Russian oil imports – which will tighten supply.
Brent settled 3.8% higher at USD 111.55/barrel, with WTI settling at USD 110.49/barrel, up 4.1% day-on-day.
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.