MNI BRIEF: 5-Yr Inflation Expectation Highest Since May-NY Fed

MNI China Daily Summary: Monday, February 10

MNI BRIEF: PBOC'S Zou Promoted To Vice Governor Role

MNI BRIEF: China Steel To See Limited Impact From U.S. Tariffs

MNI: China CFETS Yuan Index Down 0.15% In Week of Feb 7

MNI: PBOC Net Drains CNY234 Bln via OMO Monday

EZ/UK T-Bill Calendar: Spain, Belgium, Finland Due Tuesday

EZ/UK Bond Supply Calendar: UK, IT, EU Syndications Upcoming

MNI: NORWAY JAN CORE CPI +0.1% M/M, +2.8% Y/Y

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

NATGAS: High TTF Pricing May Support Gas-To-Gasoil Switching In Europe

NATGAS
Energy BulletsBulletPower BulletsCommodities

High TTF pricing may support gas-to-gasoil switching in Europe, Bloomberg reports. 

  • TTF surpassed the equivalent of $100/bbl on Monday, a two-year high.
  • This puts European natural gas pricing slightly ahead of the benchmark diesel future in Europe, which hasn’t happened since early 2023.
  • The price jump raises the prospect for more switching from gas to petroleum products, including gasoil, where flexibility is available.
  • “We have already seen increased gas-to-fuel oil switching and gas-to-gasoil is next,” said Eugene Lindell, head of refined products at consultancy FGE. “This is one of the pillars of gasoil strength right now.”
  • However, gas-to-gasoil switching will increase gasoil demand in Europe by less than 100k b/d, according to FGE.
  • The switch to other fuels may also be seen in Asia, which competes with Europe for LNG imports.
  • “Europe and Asia will all lean towards consuming more oil and more coal if they in any way can do so,” SEB AB said in a note.
157 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

High TTF pricing may support gas-to-gasoil switching in Europe, Bloomberg reports. 

  • TTF surpassed the equivalent of $100/bbl on Monday, a two-year high.
  • This puts European natural gas pricing slightly ahead of the benchmark diesel future in Europe, which hasn’t happened since early 2023.
  • The price jump raises the prospect for more switching from gas to petroleum products, including gasoil, where flexibility is available.
  • “We have already seen increased gas-to-fuel oil switching and gas-to-gasoil is next,” said Eugene Lindell, head of refined products at consultancy FGE. “This is one of the pillars of gasoil strength right now.”
  • However, gas-to-gasoil switching will increase gasoil demand in Europe by less than 100k b/d, according to FGE.
  • The switch to other fuels may also be seen in Asia, which competes with Europe for LNG imports.
  • “Europe and Asia will all lean towards consuming more oil and more coal if they in any way can do so,” SEB AB said in a note.