The gas map is back: TTF caught in the rouble trouble, Henry climbed to pre-shale price levels and JKM is moderating down on China’s lockdowns.
In Europe, TTF prices remained above $30/mmbtu in April, although down by 24% compared to their record March levels. record LNG inflows into the EU (12 bcm) and a steep drop in gas demand (down by 15%) has offset the tightening impact of plummeting Russian flows (down by one-third).
Russia’s rouble decree is fuelling more uncertainty and price volatility, which could become more pronounced in May, when most of the April payments are due.
In the US, Henry Hub prices jumped to an average of $6.59/mmbtu -their highest April level since 2008. a lingering cold drove up residential and commercial demand by an impressive 12% yoy, whilst production growth remained limited (up by around 3%). consequently, the US storage deficit further deteriorated in April, with storages now standing 17% below their 5y average.
In Asia, JKM prices moderated down to $29/mmbtu on weak buying interest, lockdowns in China and comfortable storage levels. China’s LNG imports collapsed by 33%.
What is your view? how will the summer market evolve? how will Russia’s rouble decree play out in May?
Source: Greg Molnar (LinkedIn)