Market Insights 07/06/2024

DAILY MARKET REPORT – 07/06/2024

A small uptick in yesterdays session as a return to some of the flow through Nyhamna was awaited.

Nyhamna is now processing at a little over 50% of its capacity, and it is expected that will now get back to normal over the weekend. That should, for now, end fears seen in the market earlier this week when markets rallied on news of the issue – confirming the market is still in a nervous state.

Despite that return, the market remains nervous and any global issue can knock its confidence and cause some level of panic.

Yesterday saw the TTF Front Month contract settle at €33.69 (from €33.36) and the NBP Front Month contract at 80.53p (from 79.34p).

Nyhamna remains on unplanned outage this morning and we see a flow level at 306mcm (273) Russian nominations showing Velke Kapusany at 43.4mcm (42.9) and Sudzha at 42.4mcm (42.4). Nord Stream remains unavailable. EU gas storage showing at 70.86% full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 1.

This morning we see the Front Month TTF contract at €33, DOWN €1 to the previous settlement.

A quick check on some key contracts (rounded to nearest whole):
Curve TTF Front Month €34, Front Season €38 (vs €34 and €38)
Curve NBP Front Month 81p, Front Season 98p (vs 79p and 97p)
UK Gas NBP spot 79p (from 79p)
UK Power DA £66 (from £79)

UK power prices show the UK Front Month Baseload contract at £74 (£73) and Front Season at £88 (£88).

In other areas of the market Brent Oil is at $80 ($78) and EUAs are at €72 (€72). Henry Hub is at $2.82 ($2.76) and JKM is at $11.99 ($11.97) with TTF Equiv of $10.75 ($10.64).

Numbers in brackets show the previous reports value.