Natural Gas Summary at European Close: TTF Regains Ground

TTF has shrugged off earlier losses to be trading higher on the day. Falling flat prices has likely sparked some discretionary buying, while mild weather is helping to limit heating demand.

• TTF APR 24 up 3.1% at 26.6€/MWh
• TTF SUM 24 up 2.7% at 26.93€/MWh
• Temperatures in most of Europe are set to remain mild into mid-March with temperatures in central Europe especially high relative to normal.
• European gas storage was up at 62.12% full on Mar. 2 according to GIE data compared to the seasonal five-year average of 45.4%. Withdrawal rates have fallen back below normal after the near normal levels seen for much of last week.
• Norwegian pipeline supplies to Europe are today nominated up to the highest since Feb. 1 at 346.8mcm/d.
• EU LNG imports are set to fall in March from 15.1bcm last year amid oversupply, weak demand and increasing competition from Asian buyers: Montel.
• Ukraine doesn't plan direct talks with Russia on gas transit but is ready to discuss gas transit service with EU partners according to the Ukrainian Prime Minister.
• The outlook for both Asia spot LNG and TTF remains bearish with upside risks from weather, supply disruptions and higher demand according to BNEF.
• LNG prices in North Asia have been supported by a pick-up in buying from China, according to ANZ bank.
• China’s imports from June-Sep. of pipeline natural gas and LNG are set to rise by 10.5% and 2.9% respectively on the year, according to OilChem.
• Gas Exporting Countries Forum (GECF) members highlighted the requirement for long-term contracts to ensure supply and investment, at a summit on Saturday according to Montel.