Pricewatch l 26 Jul 2023 I Gas Matters Today

European gas prices extended gains on Tuesday on continued expectations of higher LNG competition from Asia, which could lead to diminished supply to Europe.

Tuesday saw European prices rise for a fifth day in a row, its longest streak since April, as outages tighten global supply while heat blankets parts of the region, especially in its southern parts.

In addition, planned maintenance at major Norwegian facilities is scheduled next month, and, in Russia, Yamal LNG plans to shut one production train for works during three weeks in August.

As a result, TTF rose 6.5% to USD 10.57/MMBru, and NBP advanced by 6.3% to USD 10.48/MMBtu. JKM again followed suit albeit to a lesser extent, growing 1.8% to USD 11.46/MMBtu.

In the US, a portion of the Columbia Gas Transmission Pipeline shut after a fire in its vicinity, reducing feedgas supplies to the Cove Point LNG plant. Therefore, Henry Hub grew 1.7% to USD 2.73/MMBtu.

Meanwhile, oil hit three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the economy lifted sentiment, according to Reuters.

Brent settled at USD 83.64/barrel and WTI at USD 79.63/barrel, both up 1.1%.

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.