Pricewatch l 28 Jul 2023 I Gas Matters Today

European gas prices fell for their second consecutive day on Thursday, with strong inventories and sluggish demand keeping a lid on prices.

Gas consumption has so far remained significantly below historical averages after last year’s energy crisis forced governments and companies to curb usage. That, along with higher-than-usual inventories, has proven to provide a sense of security, even though the market stays susceptible to short-term disruptions in supply.

TTF fell 12.3% to USD 8.34/MMBtu, while NBP declined by a more modest 4.8% to USD 9.01/MMBtu.

Henry Hub saw a sharp 6.5% dip and settled at USD 2.49/MMBtu, after the EIA posted a bearish storage report. Gas injections for the week ended 21 July total 16 Bcf, on the lower range of the expectation which was pegged at 6-36 Bcf and compared with the 18 Bcf injected a year ago.

Oil settled higher Thursday, with Brent crude reaching USD 84.24/barrel for the first time since April, supported by supply tightness following OPEC+ production cuts and renewed bullishness on the outlook for Chinese demand and global growth, Reuters reported.

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.