NATGAS: Gas Summary at European Close: TTF Volatile on Ukraine Gas Uncertainty
Sep-19 15:50
Having reached its highest intraday since Sep. 10, TTF front month subsequently plummeted to lows not seen since late July. The cause of the fall was reports of a potential deal to supply gas from Azerbaijan to Europe, transiting via Ukraine.
- TTF OCT 24 down 6.8% at 32.85€/MWh
- An anonymous Ukrainian official told Bloomberg that no deal has yet been signed with Azerbaijan on gas transit flows. However, Ukraine is open to a deal that would allow gas to transit through its territory into Europe.
- Temperatures in NW Europe are expected above normal for the coming few days, but the forecast has cooled with at or below normal now expected to arrive during next week.
- Norwegian pipeline supplies to Europe are today nominated at 219.7mcm/d, according to Bloomberg. Gassco shows outages of 191.2mcm/d today falling to 93.4mcm/d tomorrow with some maintenance come to an end.
- The European Union is not providing enough support to end dependence on Russian natural gas supplies, according to Hungary's energy security chief cited by Reuters.
- European energy companies are in a strong position heading into winter, despite the end of a key transit deal between Russia and Ukraine from Dec. 31, according to Uniper’s CEO Michael Lewis at Gastech.
- TotalEnergies has extended a sales and purchase agreement with China's CNOOC for delivery of 1.25m tons of LNG per year by five years until 2034.
- India will not buy LNG from Russian projects under US sanctions, it’s Oil Minister said, cited by Bloomberg.
- U.S. natural gas producer EQT said U.S. natural gas prices are expected to remain below $3/mmbtu in the short term, according to Reuters.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: US TSY 42D AUCTION: HIGH RATE 5.185%; 57.12% AT HIGH
Aug-20 15:32
- US TSY 42D AUCTION: HIGH RATE 5.185%; 57.12% AT HIGH
- US TSY 42D BILL AUCTION: DEALERS TAKE 40.28% OF COMPETITIVES
- US TSY 42D BILL AUCTION: DIRECTS TAKE 7.27% OF COMPETITIVES
- US TSY 42D BILL AUCTION: INDIRECTS TAKE 52.45% OF COMPETITIVES
- US TSY 42D AUCTION: BID/COVER 2.72
PIPELINE: $6.5B World Bank 2Pt Launched
Aug-20 15:24
- Date $MM Issuer (Priced *, Launch #)
- 8/20 $6.5B #World Bank $3B 2Y +27, $3.5B10Y +57
- 8/20 $5B *EIB 5Y SOFR+38
- 8/20 $Benchmark Pricoa Global Funding 3Y +85a, 7Y +120a
- 8/20 $600M #Development Bank of Japan (DBJ) 3Y SOFR+53
- 8/20 $Benchmark Kroger 7-tranche issuance from 2Y-40Y to help fund $24.6B Albertsons merger
- Expected Wednesday:
- 8/21 $Benchmark ADB SOFR+40a
US DATA: Philly Non-Mfg Firms Back Themselves But Employment Tumbles
Aug-20 15:17
- The Philly Fed non-manufacturing business index extended what was an already large decline as it fell to -25.1 in August after -19.1 in July.
- This figure (which shows on screens) is for general activity in the region, but it masks some stronger internal details as general activity at a firm level bounced from -10 to +8.3, helped by sales rising from -3.5 to +6.8.
- It meant firms were at one of their most optimistic on record since the series started in 2011 when looking relative to their perception of regional activity.
- That’s not to say it was a strong report though: orders improved but were still -0.3 after -7.1 whilst the employment measures were especially weak.
- In particular, full-time employees fell further from -4.9 to -14.9 and part-time employment fell from +4.0 to -0.5.
- A lack of recessions in the series history limits comparison here but outside of Apr-May 2020, this is the lowest full-time reading on record for full-time employees (bottomed out at -8.9 from 2011-early 2020).
