Pricewatch | 25 Jan 2022 | Gas Matters Today

European gas prices soared on Monday, hitting a 12-day high amid rising concerns that Russia could invade Ukraine.

The February-dated NBP and TTF contracts rallied by over 17% on Monday, with the Dutch marker closing at the equivalent of USD 30.83/MMBtu – USD 0.61/MMBtu higher than the UK gas benchmark.

The rally was pinned on rising concerns that Russia could invade Ukraine – which could impact gas supply to Europe.

Low wind power generation across much of Europe also supported gas prices on Monday.

While European gas prices rallied, the European carbon price continued to fall, closing 0.5% lower at 83.66/MMBtu.

Across the pond, US gas benchmark closed 0.7% higher at USD 4.03/MMBtu. Gains were capped by forecasts suggesting milder weather across much of the US in early February.

Asian LNG marker JKM closed 14% higher, pushed higher by strong gains by the European gas markers. The front-month JKM contract settled at USD 25.19/MMBtu.

Oil prices continued to fall on Monday amid concerns that the US Federal Reserve could increase interest rates, however prices were rallying on Tuesday after the United Arab Emirates reported on Monday that it had intercepted a missile attacked by Yemen-based Houthi rebels. 

The March-dated Brent and WTI contracts settled 1.8% and 02.1% lower respectively on Monday. Brent settled at USD 86.27/barrel, with WTI closing at USD 83.31/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.