Market Insight
Tony Jordan
16 January 2023

Market Insights 16/01/2023

Markets closed the week in bearish mode as the queue of LNG tankers heading towards Europe continue to stay strong alongside healthy gas storage across Europe.

Temperatures early this week will drop for a few days, which have been expected for a good few days, before returning to seasonal normal. The latest long range forecasts show no cold spell to be expected in February which again gives some comfort to the supply mix as we make our way through the second half of winter.

Friday saw the TTF February contract settle at €64.81 (from €66.81) and the NBP February contract at 162.54p (from 167.42p).

No unplanned outage this morning and we see a flow level at 334mcm from Norway (337). 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 81.70% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 20.

This morning we see the February TTF contract at €64, DOWN €1 to the previous settlement. 

A quick check on some key contracts:
Curve TTF February €64, Summer €67 (vs €65 and €70)
Curve NBP February 163p, Summer 168p (vs 167p and 175p)
UK Gas NBP spot 168p (from 180p).
UK Power DA £152 (from £100).

UK power prices show the UK February Baseload contract at £163 (£168) and Summer at £161 (£164).

In other areas of the market Brent Oil is at $85 ($84) and EUAs are at €80 (€80). Henry Hub is at $3.42 ($3.70) and JKM is at $20.17 ($26.76).

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