Lower credit rates in China
The yo-yoing continues on the markets: after a new decline in the equity markets yesterday and a sharp drop in long term rates (10 years…
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European gas prices extended gains yesterday, supported by rising temperatures, ongoing weak supply and strong Asia JKM prices (+2.59% on the spot, to €41.291/MWh). On the pipeline supply side, Russian flows remained stable at 163 mm cm/day on average yesterday, with the Nord Stream 1 gas pipeline still shut for a 10-day planned maintenance that started on 13 July. Norwegian flows were up, averaging 331 mm cm/day, compared to 326 mm cm/day on Friday.
At the close, NBP ICE August 2021 prices increased by 2.900 p/th day-on-day (+3.39%), to 88.380 p/th. TTF ICE August 2021 prices were up by 81 euro cents (+2.32%) at the close, to €35.649/MWh. On the far curve, TTF Cal 2022 prices were up by 4 euro cents (+0.16%), closing at €25.194/MWh.
Weak supply and strong Asia JKM prices could continue to lend support to European gas prices today. However, after yesterday’s increase, profit taking and technical resistances (€36.011/MWh on TTF August 2021 and €25.462/MWh on TTF Cal 2022) could contribute to exert downward pressure.