DAILY MARKET REPORT – 03/12/2024
A bullish start to the week in yesterdays session.
Prices continue to remain elevated as flows hold steady, as do temperature forecasts, however the price spread between European and Asian markets starts to widen. For some time now the European prices have been attractive for LNG cargoes, but Asian demand has started to increase – as has the market price – which may start to attract some cargoes initially intended for Europe to divert.
Yesterday saw the TTF Front Month contract settle at €48.66 (from €47.81) and the NBP Front Month contract at 121.62p (from 119.56p).
No unplanned outage this morning and we see a flow level at 326mcm (325) Russian nominations showing Velke Kapusany at 38.5mcm (37.8) and Sudzha at 41.2mcm (40.8). Nord Stream remains unavailable. EU gas storage showing at 85.17% (85.47%) full as per AGSI+. LNG vessels due to arrive in UK next couple of weeks is 12 (12).
This morning we see the Front Month TTF contract at €49, NO CHANGE to the previous settlement.
A quick check on some key contracts (rounded to nearest whole):
Curve TTF Front Month €49, Front Season €46 (vs €49 and €46)
Curve NBP Front Month 122p, Front Season 113p (vs 120p and 111p)
UK Gas NBP spot 122p (from 119p)
UK Power Base spot £116 (from £91)
UK power prices show the UK Front Month Baseload contract at £103 (£100) and Front Season at £85 (£84).
In other areas of the market Brent Oil is at $72 ($72) and EUAs are at €69 (€68). Henry Hub is at $3.21 ($3.36) and JKM is at $15.12 ($14.93) with TTF Equiv of $14.97 ($14.79).
Numbers in brackets show the previous reports value.
Market Insights 03/12/2024
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