Weaker Asian prices continued to exert downward pressure

European gas prices dropped strongly yesterday, pressured by weaker Asia JKM prices (-20.88% on the spot, to €66.335/MWh), which implies LNG supply to Europe will remain high. The additional drop in Norwegian supply (to 310 mm cm/day yesterday, compared to 330 mm cm/day on Friday, still impacted by the unplanned outage at the Troll gas field, which has been extended until 20 January) had little impact. Even the prospect of a lasting weakness in Russian flows (Gazprom did not book additional transport capacity via Poland at monthly auctions yesterday and said it will not hold any sales auctions on its electronic platform until 24 January at the earliest) failed to support prices. 

At the close, NBP ICE February 2022 prices dropped by 23.780 p/th day-on-day (-11.43%), to 184.3250 p/th. TTF ICE February 2022 prices were down by €9.96 (-11.45%), closing at €77.012/MWh. On the far curve, TTF ICE Cal 2023 prices were down by 90 euro cents (-2.04%), closing at €43.168/MWh.

TTF ICE February 2022 prices have fallen more than we thought yesterday, but they found support around the 5-day Low. They are rebounding this morning, also supported by the additional drop in Norwegian flows (to 292 mm cm/day). The rebound could continue during the session. As a reminder, the “normalization” process requires prices to trade above the 20-day Low.

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

You might also read :

December 16, 2021

Indian demand bounces back

Yesterday’s EIA data release had a surprisingly bullish tone, with stock draws across the board, particularly in seasonally building products such as gasoline and propane.…
July 23, 2021

Mixed European prices

European gas prices were mixed yesterday. Spot prices were slightly down, pressured by lower demand. By contrast, curve prices were rather up, more sensitive to…
August 26, 2021

Mixed price evolution

European gas prices were mixed yesterday, unable to find a strong driver. Asia JKM prices and parity prices with coal for power generation, which tend…
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!