EnergyScan

European prices up on colder weather and concerns on Nord Stream 2

European gas prices increased strongly yesterday, supported by forecasts of colder temperatures from mid-December. News that the Biden administration was prepared to block the startup of the Nord Stream 2 gas pipeline in the event of a Russian military escalation into Ukraine also provided upward pressure. The rise in Asia JKM prices (+3.31% on the spot, to €104.412/MWh; +2.15% for the January 2022 contract, to €106.230/MWh) helped accompany the bullish momentum. Once again, Summer 2022 prices posted the strongest gains as weak gas stock levels suggest a strong injection season. On the spot pipeline supply side, Norwegian flows were stable yesterday, at 350 mm cm/day on average. Russian supply was almost stable, at 280 mm cm/day on average, compared to 281 mm cm/day on Friday.

At the close, NBP ICE January 2022 prices increased by 13.900 p/th day-on-day (+6.04%), to 243.980 p/th. TTF ICE January 2022 prices were up by  €5.96 (+6.62%) at the close, to €95.883/MWh. On the far curve, TTF Cal 2022 prices were up by €6.43 (+10.84%), closing at €65.736/MWh, with the spread against the coal parity price (€39.562/MWh, +4.06%) widening significantly.

Norwegian flows are down this morning (to 313 mm cm/day on average), due to a combination of planned and unplanned outages. This is lending support to TTF January 2022 prices (they are breaking the resistance of the R1 level). Cal 2022 should follow the rise and continue to reduce the spread (in the worse scenario, Q2/Q3/Q4 2022 prices could rise to Q1 2022 levels, pulling Cal 2022 prices to more than €90/MWh). But, in the very short term, technical selling can still bring them down.

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

You might also read :

ES-oil
December 17, 2021

The winter of diesels

Diesel stockpiles globally continue to be the focus of many market participants, as ARA stocks were depleted last week by 1.4 mb, while Singapore and…
ES-economy
September 29, 2021

Markets adjust to central banks’ new deal

The US 10-year yield settled above 1.5%, up nearly 25bp over the week. The equity markets finally reacted, with tech stocks suffering the biggest losses (-2.83% for…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

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

[booked-calendar]