European TTF gas prices slump 15%, trades at 16-month low
Quantum Commodity Intelligence - European natural gas prices slumped by almost 15% Monday as the multi-week retreat continued, while current colder weather in Europe was seen as short-lived.
TTF prices for front month Feb23 closed down 14.5% at €55.45/MWh, versus the previous settlement of €64.81/MWh and having earlier traded at €54.40/MWh, the lowest front-month price since September 2021.
The key gas-burning northern countries are currently experiencing sub-zero Centigrade nighttime temperatures, but the cold spell is expected to be brief, with temperatures forecast to return above seasonal norms later this week.
"There currently appears to be no end to the losses on the European gas market," Energi Danmark said in its latest report, adding, "the panic-like situation from last year has been replaced by confidence that Europe will get through this winter without any supply issues."
Market watchers said Europe remains well stocked with gas reserves and ample replacement volumes are available through LNG imports.
In addition, higher wind-powered generation and increased availability of French nuclear power have also dented demand for gas.
According to data from Gas Infrastructure Europe (GIE), European storage sites were last measured at nearly 82% of capacity, around a third above the same stage in 2022.
TTF values spiked briefly above €150/MWh in the first half of December amid the onset of winter, but prices have since collapsed, with Europe comfortably withstanding the December freeze, the first cold snap since Russia's invasion of Ukraine.
Meanwhile, the explosion on a pipeline carrying gas from Lithuania's Baltic port of Klaipeda to neighbouring Latvia has since been attributed to a technical malfunction rather than sabotage.
