Brent crude settled at its highest level since October 2014 on Friday as geopolitical tensions intensify supply concerns.
The front-month Brent contract closed 0.8% higher on Friday to settle at USD 90.03/barrel – its highest close in over seven years. US crude benchmark settled 0.2% higher at USD 86.82/barrel, with the marker having hit a seven-year high of USD 88.84/barrel during the session.
Intensifying geopolitical tensions in the Middle East and Eastern Europe have exacerbated supply concerns, helping lift crude prices during the week. Compared to Monday, Brent closed 4.3% higher at the end of the week, with WTI up 3.6% during the week.
As for natural gas, front-month prices in Europe fell by ~1% on Friday. Mild weather and an uptick in wind power generation weighed on month-ahead TTF and NBP. Prices along the curve edged higher amid concerns that Russia could invade Ukraine. The US and EU have both suggested that Nord Stream 2 will not flow gas should war break out in Ukraine.
The February-dated TTF contract at the equivalent of USD 30.11/MMBtu – USD 0.68/MMBtu higher than the UK gas benchmark.
Weaker gas prices weighed on the European carbon price, which closed 0.6% lower at EUR 88.82/tonne.
Across the pond, US gas benchmark Henry Hub closed 26% lower after the front-month contract rolled over to March. Thursday saw a short squeeze on the final day of trading of the February contract.
The March-dated Henry Hub contract settled at USD 4.64/MMBtu on Friday.
Asian LNG marker JKM closed 6.1% higher at USD 26.81/MMBtu.
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.
