Market Insight
Tony Jordan
19 January 2023

Market Insights 19/01/2023

A small rise across the board in yesterdays session, as the market appears to seek direction or test levels it hasn’t seen for over a year.

The International Energy Agency (IEA) noted that Chinas reopening after Covid lockdown may push oil demand to new highs this year. We could also see LNG demand increases, testing competition for Europe in the months ahead.

Harbour Energy announced it will be reducing staff numbers as a result of the UK windfall tax. They are not the first to review their operations as a result of the tax, recently increased by the government.

Yesterday saw the TTF February contract settle at €61.71 (from €60.06) and the NBP February contract at 153.88p (from 150.74p).

No unplanned outage this morning and we see a flow level at 324mcm from Norway (320). Russian nominations showing Velke Kapusany at 19.4mcm (26.9) and Sudzha at 24.4mcm (32.5). Flows on Nord Stream are now a likely physical impossibility. Gas storage showing at 80.59% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 16.

This morning we see the February TTF contract at €63, UP €1 to the previous settlement. 

A quick check on some key contracts:
Curve TTF February €63, Summer €63 (vs €62 and €62)
Curve NBP February 154p, Summer 159p (vs 151p and 156p)
UK Gas NBP spot 154p (from 159p).
UK Power DA £155 (from £138).

UK power prices show the UK February Baseload contract at £156 (£156) and Summer at £155 (£149).

In other areas of the market Brent Oil is at $85 ($86) and EUAs are at €83 (€80). Henry Hub is at $3.31 ($3.59) and JKM is at $23.09 ($22.73).

Please be sure to quote the hashtag #auxilione if using any of our selected content or use the ‘repost’ option to ensure Auxilione is shown as the source. Numbers in brackets show the previous reports value.