Pricewatch | 02 Feb 2022 | Gas Matters Today

European gas prices fell to their lowest level in eight days on Tuesday amid an increase in Russian gas flows into Europe.

The March-dated TTF and NBP contracts fell by 9.8% and 10.5% respectively on Monday, with the Dutch marker settling at the equivalent of USD 25.09/MMBtu – its lowest close since 20 January. The UK gas benchmark settled at the equivalent of USD 24.41/MMBtu.

The slumped was primarily pinned on increasing gas flows from Russia via both Ukraine and Nord Stream 1. Flows increased by 40 MMcm/d compared to Monday, according to EnergyScan.

Mild and windy weather also weighed on gas prices, however prices could increase in the coming days as Wednesday morning saw lower nominations for imports via the Velke Kapusany entry point on the Ukraine-Slovakia border. Colder weather is also expected to roll in across much of Europe next week, which could seen an increase in gas demand.

Across the pond, US gas benchmark Henry Hub fell by 2.5% to settle at USD 4.75/MMBtu.

Asian LNG marker JKM continued to fall, however a recovery could come shortly as gas storage levels across Asia are falling. In Japan, gas/LNG storage held by the nation’s largest power companies fell by 5.1% in the final week of January, with stocks standing at 1.67 mt as of 30 January, according to Japan’s Ministry of Economy, Trade and Industry (METI).

The front-month JKM contract settled 4.1% lower at USD 23.71/MMBtu.

In the oil market, Brent fell as the contract rolled over to April, with the marker settling at USD 89.16/barrel. WTI recorded a 0.1% gain to close at USD 88.2/barrel.

Front-month futures and indexes at last close with day-on-day changes (click to enlarge):

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.