Prices down on the spot and the near curve, up on the far curve

European spot and near curve gas prices dropped yesterday, pressured by warmer weather and comfortable LNG and pipeline supply. Russian flows rebounded slightly yesterday, averaging 245 mm cm/day, compared to 241 mm cm/day on Friday. Norwegian flows were stable at 324 mm cm/day on average. By contrast, far curve prices were up again, supported by resilient coal prices and the feeling that the crisis will be long-lasting, which justifies the reduction of the backwardation.

At the close, NBP ICE May 2022 prices dropped by 15.530 p/th day-on-day (-6.80%), to 213.010 p/th. TTF ICE May 2022 prices were down by €3.75 (-3.61%), closing at €100.137/MWh. On the far curve, TTF ICE Cal 2023 prices were up by €1.46 (+1.91%), closing at €77.814/MWh.

In Asia, JKM spot prices dropped by 4.50%, to €94.760/MWh; May 2022 prices dropped by 1.80%, to €103.528/MWh.

The maximum coal switching level was stable yesterday around €93/MWh. Therefore, TTF ICE May 2022 prices because were able to continue their decline quietly, below the 20-day average. But, as said yesterday, the downside potential seems limited (the 5-day Low target seems out of reach) as long as coal prices and Asia JKM prices remain resilient, with an upside risk in case fundamentals tighten.

Share this news :

You might also read :

April 8, 2021

European gas prices weakened

European gas prices weakened overall yesterday, pressured by the expected rise in temperatures from today. The drop in parity prices with coal for power generation…
March 23, 2021

European prices rebounded

European gas prices rebounded yesterday, supported by forecasts of colder weather in some countries and tight pipeline supply. The strong rise in parity prices with…
June 30, 2022

To infinity and beyond !

Buoyed by the soaring gas and carbon prices, the European power spot prices rebounded yesterday with additional support from forecasts of slightly lower wind output.…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?