Could was a document month for buying and selling Dutch Title Switch Facility (TTF) futures and choices on the Intercontinental Change because the European pure gasoline market stays unpredictable and members proceed to attempt to handle worth threat publicity.
ICE stated 5.7 million TTF futures and choices traded throughout Could. Liquidity within the European benchmark has grown this 12 months, the bourse stated, with open curiosity up 37% 12 months/12 months at 2.6 million contracts, or the very best degree since January 2022.
The change additionally stated it’s “seeing document market participation” in TTF with hedging out to December 2031.
General, 25 million TTF contracts have traded on ICE this 12 months, up 17% 12 months/12 months. TTF choices quantity is up 179% 12 months/12 months. Open curiosity, or the variety of excellent by-product contracts that serves as a sign of buying and selling exercise, is up 68% to date in 2023.
ICE added that a couple of million TTF choices have been traded in Could, the second highest quantity month since they have been launched in 2013.
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ICE has repeatedly touted document TTF volumes over the past two years because the market has tightened and the LNG commerce has continued to develop. Buying and selling has grown extra risky since Russia invaded Ukraine final 12 months.
The immediate contract adopted Brent costs larger and jumped 20% June 5 after Saudi Arabia stated it might reduce one other a million b/d of crude manufacturing. It fell by 13% the next day.
Earlier than that, because the market stays on edge over provide dangers, the contract jumped sharply after a gasoline leak knocked the Hammerfest LNG plant offline Could 31.
European regulators began publishing LNG worth assessments and a every day benchmark earlier this 12 months to supply the market a worth extra consultant of the seaborne commodity. TTF is a digital pipeline buying and selling hub the place costs usually diverge from these on the continent’s LNG import terminals.
Because the super-chilled gasoline has flooded the continent to fill the void left by a reduce in Russian provides for the reason that battle broke out, numerous worth assessments have proven LNG priced at a reduction to TTF.
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