European gas prices hit near two-year highs amid cold snap

Front-month European gas prices settled at near two-year highs on Tuesday amid a cold snap moving in across the continent, which is expected to drive gas demand. UK NBP closed at the equivalent of USD 6.89/MMBtu, its highest since late January 2019, with Dutch TTF settling at the equivalent of USD 6.29/MMBtu, its highest since early February last year.

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The gains were mirrored on the other side of the Atlantic as US gas benchmark Henry Hub rallied by 2.8% to close at USD 2.78/MMBtu. Asian spot LNG marker JKM also continued to climb, settling 7% higher to close at USD 10.76/MMBtu.

Oil prices fell again, however the front-month Brent price remained in the USD 50/barrel range. WTI remained in the USD 47/barrel range despite falling by almost USD 1 dollar for a second consecutive day.

The European carbon price stopped the rot, with ICE’s front month EU allowance (EUA) contract closing 0.8% higher to settle at EUR 31.01/tonne.

Source: Gas Strategies

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