Market Insight
Tony Jordan
19 December 2022

Market Insights 19/12/2022

A fairly wild day in the market yesterday which saw the market show gains and losses throughout the day as a direction was sought, however the bulls pulled the winning punches to show gains across the board.

No major news to drive the market currently but temperatures can now be felt as cold is expected to last for the foreseeable future which will put the market under test.

With just a few weeks before further announcements are made by the UK government regarding any potential extension of the support packages for businesses beyond March 2023, the coming weeks could be telling as prices into the next year remain considerably higher than the values set by the current support levels.

Yesterday saw the TTF January contract settle at €138.49 (from €134.70) and the NBP November contract at 346.32p (from 335.38p).

Karsto on unplanned outage this morning and we see a flow level at 333mcm from Norway (336). Russian nominations showing Velke Kapusany at 42.3mcm (40.8) and Sudzha at 42.4mcm (42.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 90.93% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 12.

This morning we see the January TTF contract at €139, UP €1 to the previous settlement. 

A quick check on some key contracts:
Curve TTF January €139, Summer €140 (vs €138 and €136)
Curve NBP January 346p, Summer 338p (vs 335p and 330p)
UK Gas NBP spot 350p (from 321p).
UK Power DA £309 (from £316).

UK power prices show the UK January Baseload contract at £495 (£515) and Summer at £305 (£300).

In other areas of the market Brent Oil is at $79 ($83) and EUAs are at €88 (€87). Henry Hub is at $5.47 ($5.58) and JKM is at $32.85 ($33.19).