EnergyScan

Strong downward correction

European gas prices dropped significantly yesterday, pressured by below-normal demand and technical correction, which outweighed the impact of lower Russian supply. Indeed, due to maintenance at Mallnow (landing point of the Yamal pipeline), Russian flows dropped to 266 mm cm/day yesterday, compared to 322 mm cm/day on Monday. As for Norwegian flows, they dropped very slightly to 328 mm cm/day on average, compared to 331 mm cm/day on Monday. The drop in coal and EUA prices (which pulled parity prices with coal for power generation lower) exerted additional downward pressure, particularly for curve prices.

At the close, NBP ICE August 2021 prices dropped by 9.680 p/th day-on-day (-10.38%), to 83.540 p/th. TTF ICE August 2021 prices were down by 384 euro cents (-10.12%) at the close, to €34.105/MWh. On the far curve, TTF Cal 2022 prices were down by 136 euro cents (-5.14%), closing at €25.136/MWh.

Despite this sharp drop, TTF August 2021 prices are still above parity prices with coal for power generation (currently at €32.454/MWh). Prices could therefore continue to weaken today. However, low Russian flows and technical rebound could contribute to limit losses.

TTF Cal 22
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

ES-economy
September 1, 2021

Euro area inflation at 10-year high

Confusion reigns in the markets: stocks are up in Asia despite fairly negative news on activity. Indeed, the China’s Caixin manufacturing PMI fell below 50 in…
ES-oil
July 27, 2021

Self-supplying East

Crude prices regained the lost ground of last week, with ICE Brent September contract at 74.6 $/b. India plans to further commercialize its SPR, in an…
ES-oil
April 27, 2021

OPEC meeting rescheduled for today

ICE Brent prompt contract reached 66.1 $/b on early Tuesday, as the OPEC+ ministerial meeting was rescheduled for today while their technical meeting held on…
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?  Sign up here!

[booked-calendar]