Sharp price increase

European gas prices increased sharply on Friday, mainly supported by the strong rise in Asia JKM prices (+13% on the spot, to €38.507/MWh). The rise in parity prices with coal for power generation (both coal and EUA prices were up) did not help calm the bullish pressure. On the pipeline supply side, Russian supply rebounded to 267 mm cm/day on average on Friday, compared to 248 mm cm/day on Thursday, following the restart of the Yamal pipeline. Norwegian flows increased to 333 mm cm/day on average, compared to 328 mm cm/day on Thursday.

At the close, NBP ICE August 2021 prices increased by 7.870 p/th day-on-day (+9.58%), to 90.020 p/th. TTF ICE August 2021 prices were up by 332 euro cents (+9.97%) at the close, to €36.632/MWh. On the far curve, TTF Cal 2022 prices were up by 118 euro cents (+4.69%), closing at €26.300/MWh.

Russian flows increased significantly over the week-end (to 326 mm cm/day) as the Yamal pipeline has fully returned from maintenance. Norwegian supply is also higher this morning (to 345 mm cm/day). This increase in supply could exert downward pressure on European gas prices today, particularly as they are now close to technically overbought levels.

Spot gas prices versus coal switching levels
Share this news :

You might also read :

December 7, 2021

Physical trade boost

Crude prices climbed back above 74 $/b at the prompt, confirming that the liquidation experienced last week could be short-lived. Indeed, geopolitical risk in Saudi…
March 21, 2022

On the edge

Many equity markets have just recorded their best week since 2020 with gains of around 6%. The “fear index”, the VIX, has fallen back below the…
October 14, 2021

Prices continued to rebound

European gas prices continued to rebound yesterday, supported by uncertainty on the level of Russian flows for the coming months after President Putin said Russia…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?