Global gas prices correct downwards

European gas markets experienced another strong upward move on Monday as transport capacity auctions for the next gas year closed at noon with no capacity booked at key entry points for Russian gas flows. TTF Cal+1 prices settled at a new 8-year high at €26.50/MWh: last time they traded at this level, Brent 1st nearby prices were trading above the $100/b mark but CO2 prices were 11 times lower than their current level. It should be noted that API 2 month-ahead prices rallied as well yesterday, breaching the $125/t level at the close.

The outlook remains bullish for EU gas markets today with the startup of the Yamal shutdown until Saturday, a poor LNG supply outlook in the short-term despite a tightening of the JKM-TTF spread recently and steady Brent prices.