Market Insight
Tony Jordan
2 June 2023

Market Insights 02/06/2023

DAILY MARKET REPORT – 02/06/2023

As you were!  After Wednesdays spike, the market retreated in equal measure in yesterdays session as the panic caused by news of the Hammerfest LNG leak (stopped late on Wednesday) was said to be coming back online early next week.

The market remains otherwise confident with new lows being set as a result – but it is clear the smallest bit of negative news can cause short term panic. Let’s see what today brings us.

Yesterday saw the TTF July contract settle at €23.10 (from €26.85) and the NBP July contract at 54.27p (from 63.53p).

Norne remains on unplanned outage this morning and we see a flow level at 231mcm from Norway (209). Russian nominations showing Velke Kapusany at 36.8mcm (36.9) and Sudzha at 40.6mcm (40.6). Nord Stream remains unavailable. Gas storage showing at 68.87% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 4.

This morning we see the July TTF contract at €23, NO CHANGE to the previous settlement.

A quick check on some key contracts (rounded to nearest whole):
Curve TTF July €23, Winter €41 (vs €23 and €42)
Curve NBP July 54p, Winter 105p (vs 64p and 111p)
UK Gas NBP spot 58p (from 64p).
UK Power DA £71 (from £69).

UK power prices show the UK July Baseload contract at £70 (£73) and Winter at £117 (£120).

In other areas of the market Brent Oil is at $74 ($73) and EUAs are at €79 (€81). Henry Hub is at $2.16 ($2.27) and JKM is at $9.27 ($9.29) with TTF Equiv of $7.29 ($8.40).

Numbers in brackets show the previous reports value.