EnergyScan

After an initial selloff, prices resumed their uptrend

European gas prices resumed their uptrend yesterday, still supported by ongoing tight fundamentals. Indeed, Russian supply dropped further yesterday, averaging 278 mm cm/day (compared to 288 mm cm/day on Friday), due to an additional drop in flows through Poland to the Mallnow interconnection point. Norwegian flows were also down, averaging 282 mm cm/day (compared to 287 mm cm/day on Friday), due to planned maintenance works. The rise in Asia JKM prices and in parity prices with coal for power generation provided additional support.

Nord Stream 2 operator’s announcement that the dual-pipeline system had been completed offshore (paving the way for pre-commissioning work to take place ahead of commercial operations before the end of 2021) triggered an initial selloff, but traders quickly rushed to buy the dip and the bullish trend quickly resumed.

At the close, NBP ICE October 2021 prices increased by 3.660 p/th day-on-day (+2.81%), to 134.110 p/th. TTF ICE October 2021 prices were up by 137 euro cents (+2.66%) at the close, to €52.874/MWh. On the far curve, TTF Cal 2022 prices were up by 88 euro cents (+2.57%), closing at €35.087/MWh, slightly above the coal parity price (€34.684/MWh).

The announcement about Nord Stream 2 could finally exert a downward pressure on European gas prices today. But, for the market to really take a (short term) downtrend, prices must first break some key supports (€51.880/MWh on TTF October 2021 and €34.406/MWh on TTF Cal 2022).

Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-economy
February 10, 2022

US inflation rate expected to rise above 7

There is decidedly little happening in the markets this week apart from a fairly sharp rebound in equities, buoyed by strong corporate results, but that…
ES-oil
March 25, 2021

Sharp rebound in crude oil prices

Brent 1st-nearby prices posted a $4/b gain yesterday. WTI prices did about the same. They respectively ended the day above $64.5/b and $61.2/b, therefore erasing…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!

[booked-calendar]