Market Insight
Tony Jordan
4 December 2022

Market Insights 04/12/2022

A bullish start to the week across the curve as contracts regained ground lost at the end of last week.

Norwegian outages continue this morning following the fire on Asgard but expected to be back online towards the end of the week.

Meanwhile temperatures hold above seasonal normal, with a cold dip at the weekend with the latest long term forecast it will then stay at or just below seasonal normal until the end of the year. This will no doubt start to put some pressure on the markets after a strong last six weeks or relative warmth for this time of year.

Nord Stream 1 have now commenced their on-site survey of the damaged pipelines and so further details may be released over the coming weeks.

Yesterday saw the TTF December contract settle at €113.70 (from €97.85) and the NBP November contract at 272.88p (from 228.43p).

Asgard and Visund on unplanned outage this morning and we see a flow level at 295mcm from Norway (308). Russian nominations showing Velke Kapusany at 41.2mcm (36.8) and Sudzha at 42.4mcm (42.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 95.55% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 18.

This morning we see the December TTF contract at €120, UP €6 to the previous settlement. 

A quick check on some key contracts:
Curve TTF December €120, Summer €120 (vs €98 and €108)
Curve NBP December 273p, Summer 277p (vs 228p and 246p)
UK Gas NBP spot 95p (from 120p).
UK Power DA £107 (from £146).

UK power prices show the UK December Baseload contract at £282 (£253) and Summer at £249 (£227).

In other areas of the market Brent Oil is at $93 ($96) and EUAs are at €75 (€76). Henry Hub is at $5.93 ($5.88) and JKM is at $27.23 ($27.23).