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NATGAS: TTF Eases Back After Rally on Hot Weather in Asia and Europe

NATGAS

TTF front month has eased back from a high of €34.15/MWh after a rally yesterday supported by concern for increased competition for LNG supplies amid a heat wave in northern Asia and warm weather in Europe.

  • Temperatures in NW Europe are set to remain above normal to support cooling demand although could see a pull back closer to normal over the coming weekend. 
  • Norwegian pipeline supplies to Europe are almost unchanged on the day at 340.3mcm/d with Gassco showing outages falling to 10.7mcm/d tomorrow and just 1.1mcm in early August.
  • European LNG sendout was the lowest since Oct 2021 at 212mcm/d on July 28, according to Bloomberg compared to an average of 247mcm/d so far in July and 324mcm/d in July last year amid muted demand.
  • European gas storage is up to 84.49% full on July 28 according to GIE compared to the five year average of 75.3% with injection rates rising back to normal.
  • Gas transit flows through Ukraine are at 42.4mcm/d today and Algeria gas flow to Italy at Mazara are up to 58.6cm/d.
  • ICE TTF daily aggregate traded futures volume was at 319k on July 29.
    • TTF AUG 24 down 0.8% at 33.6€/MWh
    • TTF WIN 24 down 0.5% at 38.3€/MWh
    • TTF SUM 25 down 0.1% at 37.51€/MWh

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