Market Insights 06/12/2024

DAILY MARKET REPORT – 06/12/2024

A further small drop seen in yesterdays session, as we try to pull away from those recent highs.

Yesterday a Russian decree was passed banning Gazprombank, partly owned by Gazprom, from changing foreign currency to Rubles for the payment of gas, meaning any buyers must now source their own local currency to pay for Russian gas. This process was put in place some time ago to allow overseas buyers to continue buying Russian gas as sanctions took hold on Russia. This new decree may have limited impact as the transit deal comes to an end in a few weeks time.

Yesterday saw the TTF Front Month contract settle at €46.55 (from €47.05) and the NBP Front Month contract at 116.00p (from 117.24p).

No unplanned outage this morning and we see a Norwegian flow nomination level at 341mcm (339), Russian nominations showing Velke Kapusany at 39.4 mcm (39.5) and Sudzha at 42.3mcm (42.3). Nord Stream remains unavailable. EU gas storage showing at 83.61% (84.16%) full as per AGSI+. LNG vessels due to arrive in UK the next couple of weeks is 12 (12).

This morning we see the Front Month TTF contract at €46, DOWN €1 to the previous settlement.

A quick check on some key contracts (rounded to nearest whole):
Curve TTF Front Month €46, Front Season €45 (vs €47 and €45)
Curve NBP Front Month 116p, Front Season 108p (vs 117p and 109p)
UK Gas NBP spot 116p (from 119p)
UK Power Base spot £79 (from £93)

UK power prices show the UK Front Month Baseload contract at £99 (£99) and Front Season at £83 (£83).

In other areas of the market Brent Oil is at $72 ($72) and EUAs are at €67 (€68). Henry Hub is at $3.08 ($3.04) and JKM is at $15.07 ($15.08) with TTF Equiv of $14.43 ($14.53).

Numbers in brackets show the previous reports value.