Market Insight
Tony Jordan
4 January 2023

Market Insights 04/01/2023

Markets enjoyed another bearish session yesterday wiping out the gains seen in the previous session to put us back very closely to Mondays close.

On Friday ACER, the EU energy regulator, will start to publish its LNG price index which forms part of the European plan to separate LNG prices from the TTF announced late last year.

LNG flows towards Europe remain strong for the couple of weeks ahead as Europe is expected to see a temporary dip in temperatures in the coming days before they are expected to return to seasonal normal. This strong inbound flow, and warmer temperatures, has helped keep EU gas stocks impressively high for this time of year, still above 80%.

Yesterday saw the TTF February contract settle at €70.07 (from €74.30) and the NBP February contract at 171.30p (from 183.64p).

No unplanned outage this morning and we see a flow level at 340mcm from Norway (342). Russian nominations showing Velke Kapusany at 29.8mcm (29.8) and Sudzha at 35.4mcm (35.4). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 82.83% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 17.

This morning we see the February TTF contract at €72, UP €2 to the previous settlement. 

A quick check on some key contracts:
Curve TTF February €72, Summer €73 (vs €70 and €77)
Curve NBP February 171p, Summer 182p (vs 184p and 192p)
UK Gas NBP spot 165p (from 182p).
UK Power DA £99 (from £122).

UK power prices show the UK February Baseload contract at £175 (£185) and Summer at £175 (£180).

In other areas of the market Brent Oil is at $80 ($80) and EUAs are at €81 (€81). Henry Hub is at $3.64 ($3.91) and JKM is at $27.06 ($27.12).