Prices weakened on sharply lower coal prices

European gas prices weakened yesterday, pressured by the sharp drop in coal prices (which pulled parity prices with coal for power generation significantly down) as the Chinese government’s intervention plan to increase coal supply seems to produce effects. If these effects are confirmed, they could lead to a slowdown in Chinese LNG imports. Yesterday, Asia JKM prices were down: -3.86%, to €100.178/MWh, on the spot; -5.68%, to €98.230/MWh, for the December 2021 contract.

On the pipeline supply side, Russian flows increased slightly yesterday, averaging 258 mm cm/day, compared to 255 mm cm/day on Wednesday. Norwegian supply was slightly lower, to 342 mm cm/day on average, compared to 345 mm cm/day on Wednesday.

At the close, NBP ICE November 2021 prices dropped by 12.410 p/th day-on-day (-5.31%), to 221.400 p/th. TTF ICE November 2021 prices were down by €4.99 (-5.34%) at the close, to €88.463/MWh. On the far curve, TTF Cal 2022 prices were down by €2.33 (-4.12%), closing at €54.271/MWh, widening the spread against the coal parity price (€33.671/MWh, -8.26%).


Yesterday, TTF ICE November 2021 prices finally dropped below the 20-day average. But, even if the possible easing of the energy crisis in China gives rise to hopes of a more comfortable LNG supply to Europe, low stock levels and uncertainty on Russian supply remain key supportive factors. Therefore, the downside potential should be limited for the moment, with the 5-day Low as a strong support level (an intermediate level at €87.68/MWh could also lend support).

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

You might also read :

January 11, 2022

Venezuelan recovery

ICE Brent front-month continued to trade above 81 $/b, despite improving supply conditions in Kazakhstan and Lybia. Both countries are ramping up their crude production and should…
June 10, 2021

Inflation day

ICE Brent price declined to 71 $/b after a rather mixed EIA report showing crude draws combined with large product builds, as US refineries ramped…
July 20, 2021


Falling inflation expectations, combined with collapsing equities globally, likely triggered a sell-off in crude and refined products futures. ICE Brent prompt contracts for September delivery went…
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!