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Colder Forecasts Prompting TTF Recovery

NATURAL GAS

European gas prices are tussling with weather forecasts that indicate temperatures will drop below seasonal norms ahead of Christmas.

  • Despite warming temperatures across the region early next week, temperatures are set to return below the seasonal average by the end of next week in the Nordics and the UK.
  • Europe has shown its ability to weather the first cold snap test through a combination of high storage and high LNG to combat the loss of Russian flows.
  • Europe now also faces competition for LNG cargoes as China recently bought shipments of the fuel for early next year, pivoting away from its zero covid strategy.
  • TTF JAN 23 up 1.9% at 134€/MWh.

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