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Russian Supply Outweighs Ending of Norway Strikes

NATURAL GAS

Front month TTF turns positive on the day reversing the earlier decline cause by the ending of Norwegian strike action

  • TTF AUG 22 up 1.2% at 167€/MWh
  • The risk of continuing or even worsening pipeline supply into Europe is maintaining the bull trend. TTF has more doubled since level of around 80€/MWh in mid June.
  • Nord Stream pipeline flows from Russia have been curtailed for over 3 weeks with further concerns for supply following a complete halt for planned maintenance from 11th to 21st July. Many in Europe fear that Russia won’t bring any flows back online following the outage period.
  • The ongoing supply issues raise the prospect of constraints on gas usage imposed by governments. UK National Grid is due to meet with gas network companies on Thursday to discuss how to get industry to cut consumption for this winter.

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