Slowly decreasing risk premium for EU gas prices

European gas prices ended the session with minor moves on Thursday despite a bullish start on the back of a drop in nominations for Russian gas imports through Ukraine at the Velke Kapusany entry point. Favorable weather continued to exert bearish sentiment on the prompt while seaborne coal prices corrected downwards as the Chinese NDRC announced at a conference on 9 Feb a series of measures to improve production and cap prices at local mines in order to prevent domestic prices from rising further.

An upward revision in temperature forecasts for next week could continue to weigh on prompt contracts at European gas hubs today as temperatures are now expected to be up to 5-6 Celsius degrees above seasonal norms in northwestern Europe mid next week. On the supply side, nominations for Russian gas imports at Velke are slightly down again this morning but the LNG delivery schedule remains particularly busy in western Europe for the coming two weeks, which should keep European gas systems relatively comfortable. JKM-TTF spreads for Q2-22 delivery drifted lower over the past few days (see chart) and this could indicate that the current LNG wave to Europe could be prolonged beyond March if the downward trend continues. Market players should keep an eye on comments and developments surrounding Russian military exercises in Belarus and naval drills in the Black Sea that began yesterday with UK’s Prime Minister Boris Johnson stating that the Russia-NATO clash was facing “its most dangerous moment” in the next few days.

EnergyScan gas news
Share this news :

You might also read :

July 29, 2021

EUAs rose alongside the stronger energy complex

The power spot prices plunged in northwestern Europe yesterday amid forecasts of surging wind output, stronger solar generation, slightly improved French nuclear production and weaker…
February 9, 2021

Rallying by default

At 61 $/b, Brent prompt futures are now at their 7th consecutive positive session, boosted by a weakening dollar and Libyan output unable to ramp-up due…
July 27, 2021

European prices up again

European spot gas prices increased yesterday, supported mainly by lower Norwegian supply. Indeed, Norwegian flows were significantly down, averaging 275 mm cm/day, compared to 309…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?