Market Insight
Tony Jordan
13 December 2022

Market Insights 13/12/2022

The bears took the session yesterday after a few days of bull control to give back some discount to the market.

However this mornings latest weather runs show a sizeable dip in temperatures to be expected throughout December compared to the run earlier in the week which may have an impact in market sentiment.

Unsurprisingly the EU didn’t agree on the price cap proposal, a long standing talking point this year. They have agreed for the principle of affordable gas supply in Europe and to invest in renewables but will revisit the price cap idea again at a future meeting – with around half of the 27 countries supporting it.

Yesterday saw the TTF December contract settle at €123.79 (from €129.62) and the NBP November contract at 291.69p (from 301.72p).

No unplanned outage this morning and we see a flow level at 338mcm from Norway (319). Russian nominations showing Velke Kapusany at 37.3mcm (38.5) and Sudzha at 42.4mcm (42.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 94.38% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 15.

This morning we see the December TTF contract at €126, UP €2 to the previous settlement. 

A quick check on some key contracts:
Curve TTF December €126, Summer €130 (vs €124 and €135)
Curve NBP December 292p, Summer 310p (vs 302p and 319p)
UK Gas NBP spot 144p (from 155p).
UK Power DA £145 (from £122).

UK power prices show the UK December Baseload contract at £300 (£305) and Summer at £272 (£276).

In other areas of the market Brent Oil is at $85 ($85) and EUAs are at €78 (€76). Henry Hub is at $7.31 ($7.31) and JKM is at $31.12 ($31.12).