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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.
NATURAL GAS
European gas markets remain weak due to high storage levels for the time of year as muted demand is Asia has enabled strong LNG imports into Europe so far this winter.
- Weaker than expected industrial demand in China has helped European LNG supplies although pricing signals are starting to emerge that suggest competition for spot LNG could accelerate. Spot cargoes could start to divert away from Europe to Asia if the bearish trend in TTF continues.
- The front month JKM-TTF spread has trended higher this month up to just over +2$/mmbtu last week while the US netback to Asia is currently higher than to Europe. The profitability of US LNG exports to Europe for July is at 4.58$/mmbtu and Asia at 5.48$/mmbtu according to Bloomberg. The netbacks also favour LNG flows to Asia through the summer months although return to favour Europe in November.
- Natural gas storage is estimated to finish the next heating season at a healthy 47% full at the end of March according to Bloomberg despite winter risks from cold weather, competition for LNG supplies and a potential recovery in industrial demand.
- TTF JUN 23 up 0.3% at 24.63€/MWh
- TTF WIN 23 down -2.3% at 41€/MWh
- TTF SUM 24 down -2% at 41.82€/MWh
Source: Bloomberg
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.
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