29 June 2024
Pricewatch | 13 Apr 2023 | Gas Matters Today
Publication date: 13 April 2023
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The European gas market received mixed signals on Wednesday, which led to falling prices on the continent’s main bourses.
Energi Danmark said in its latest morning report: “Europe faces some supply issues at the moment, with expected lower flows from Norway and reduced LNG supply due to the strike in France limiting imports. Below-average temperatures add to the upside, but milder forecasts for the coming weeks offset this and the market closed largely sideways yesterday.”
Increased power generation from wind has added to the downward pressure, with WindEurope reporting that Wednesday’s share of wind in total power generation in the EU had risen to 20.7%, with the bulk of it (17.5%) coming from offshore.
Windy weather has also ensued in the UK, where on Tuesday wind produced 46.8% of British electricity, National Grid ESO data showed.
The TTF price slid by 1.1% to USD 13.81/MMBtu, while NBP saw a 1.3% fall to USD 12.57/MMBtu.
In the US, Henry Hub traded 4.3% lower on Wednesday, settling at USD 2.09/MMBtu. This came as the US Energy Information Administration (EIA) predicted that natural gas spot prices will average USD 2.65/MMBtu in the second quarter of 2023 and will climb above USD 3/MMBtu later this year.
The IEA is due to come out with its weekly storage report, where it is expected that injections for the week ending 7 April will be higher year-on-year.
Meanwhile, oil prices rose 2% on Wednesday to their highest in more than a month as weaker US inflation data spurred hopes that the Federal Reserve is getting closer to ending its cycle of interest-rate hikes, Reuters reported.
Brent settled at USD 87.33/barrel and WTI settled at USD 83.26/barrel.
Front-month futures and indexes at last close with day-on-day changes (click to enlarge): [2] Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.