EnergyScan

Prices torn between lower Russian supply and the apparent easing of tensions on Ukraine

European gas prices were mixed yesterday. The apparent easing of tensions on the Ukrainian border exerted downward pressure on curve prices. By contrast, spot prices were supported by lower Russian flows (down to 187 mm cm/day on average yesterday, compared to 212 mm cm/day on Tuesday, probably because weaker spot prices led to a reduction in offtakes on long-term contracts). The trend in Asia JKM prices (-14.03% on the spot, to €65.476/MWh; +0.50% for the April 2022 contract, to €69.230/MWh) showed competition for flexible LNG cargoes is still expected to be stronger from April.

At the close, NBP ICE March 2022 prices dropped by 3.970 p/th day-on-day (-2.32%), to 166.920 p/th. TTF ICE March 2022 prices were down by €1.12 (-1.58%), closing at €69.795/MWh. On the far curve, TTF ICE Cal 2023 prices were down by €1.46 (-2.82%), closing at €50.409/MWh. 

Energyscan gas news

The behavior of Russian flows suggests a limited downside potential for TTF spot and near curve prices for the time being. Yesterday, TTF ICE March 2022 prices benefited from the support of both the 5-day Low and the 20-day Low targets. They are rebounding this morning. But, given the levels of Asia JKM prices (which exempt European buyers from overbidding), the rebound could be limited.

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

You might also read :

ES-oil
November 5, 2021

OPEC+ maintains its output policy

Without material surprises, OPEC+ countries maintained their production policy unchanged yesterday, with 0.4 mb/d monthly production increases considered to be sufficient to respond to a…
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]