Back in backwardation ?
Crude prices continued to be lifted by a declining US dollar, while the Libyan national oil company declared force majeure on its Hariga port due to budget…
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European gas prices dropped yesterday, pressured by lower demand and profit taking. They even ignored the drop in pipeline supply. Indeed, Russian supply dropped to 163 mm cm/day on average yesterday, compared to 310 mm cm/day on Monday, as the Nord Stream 1 gas pipeline was shut for a 10-day planned maintenance from Tuesday 13 July. Norwegian flows dropped to 328 mm cm/day on average, compared to 342 mm cm/day on Monday.
At the close, NBP ICE August 2021 prices dropped by 1.800 p/th day-on-day (-2.07%), to 85.290 p/th. TTF ICE August 2021 prices were down by 69 euro cents (-1.94%) at the close, to €34.775/MWh. On the far curve, TTF Cal 2022 prices were down by 31 euro cents (-1.20%), closing at €25.361/MWh.
European gas prices could continue their technical correction today. However, given the weak Russian supply, losses should be limited.