European TTF gas prices slump 10% as temperatures soar
Quantum Commodity Intelligence - European natural gas prices Friday crashed by around 10% to register fresh 10-month lows as seasonally mild temperatures returned across the continent, particularly to the gas-burning northern countries.
Berlin is set to see in 2023 with day-time temperatures in excess of 15C, while Paris could clock high-teens early next week.
Even in the far west of Northwest Europe, Ireland's county Kerry on the chilly Atlantic coast was reporting double-digit temperatures on Friday.
This has sent spot gas demand crashing amid measures already in place to preserve precious stocks over winter, while inventories remain high despite the cold snap earlier this month.
TTF prices for front month Feb23 slumped to a low of €75/MWh earlier in the session, versus the previous settlement of €85.10/MWh, although edged up to around €75.50/MWh during early afternoon trade.
Latest data from Germany showed that in the week ending 25 December, gas consumption was nearly 25% below the five-year average and more than a third down from the previous week, as temperatures soared to spring-like conditions.
The relatively mild winter has helped Europe avoid what many analysts believed would be an energy crisis as Russian supplies dwindled throughout the year.
European prices initially spiked to over €200/MWh in March after Russia invaded its neighbour but settled down as Russian gas flows continued.
But prices surged in the summer amid continuous disruptions to Russian supplies into Europe and an explosion at the US Freeport LNG terminal, peaking at a record €350/MWh at the end of August and prompting Europe to introduce emergency measures to boost imports and preserve supplies for winter.
TTF prices have largely been in decline ever since, but values spiked briefly above €150/MWh three weeks ago with the onset of winter, but prices have since halved.
