European gas prices plunged on Monday amid mild and windy weather, and increasing gas imports.
The March-dated TTF and NBP contracts fell by over 7% on Monday, with the Dutch marker settling at the equivalent of USD 27.82/MMBtu – USD 0.54/MMBtu higher than the UK gas benchmark.
The fall was pinned on mild and windy weather for much of Europe. Additionally strong pipeline and LNG imports weighed on prices. Monday saw Russian gas flows into Europe hit 243 MMcm/d – the highest since late December. Volumes via Ukraine were up sharply day-on-day and volumes through Nord Stream 1 were running at full capacity.
Across the pond, US gas benchmark Henry Hub closed 5.1% higher at USD 4.87/MMBtu. Colder weather was behind the rally, with fears rising that the cold blast could lead to well freeze-offs across the Lower 48. US gas production is still recovering from well freeze-offs in January.
Asian LNG marker JKM saw much of the gains recorded on Friday erased on Monday. The front-month contract settled 7.8% lower at USD 24.71/MMBtu.
Oil continued to climb.
The March-dated Brent contract – which expired on Monday – closed 1.3% higher to settle at USD 91.21/barrel. The US crude benchmark settled 1.5% higher at USD 88.15/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.
