European natural gas prices fell across the board on Thursday, as the market anticipates the upcoming cold spell with less nervousness as stocks remain plentiful.
NBP fell 5.7% to USD 17.65/MMBtu, and TTF saw a 4.2% decline to USD 18.25/MMBtu. Asian LNG prices also weakened, falling 3.2% to USD 18.37/MMBtu.
Following a short cold spell, temperatures across Western and Central Europe are set to increase again next week. This led to falling prices on the European gas market yesterday, according to traders Energi Danmark.
It said in a morning report: “The market has been trading a bit range-bound lately, as changes to weather forecasts have not been able to cause as big fluctuations as we have seen earlier. This indicates that the market is not as nervous as we saw particularly last year. We expect another largely neutral session today.”
Meanwhile, the Henry Hub front-month contract was down 0.5% to USD 2.46/MMBtu as weakness persisted. According to traders, for now there is little sign of recovery as production continues exceeding expectations.
Front-month futures and indexes at last close with day-on-day changes (click to enlarge): Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.
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