TTF Finds Further Traction Friday as Europe Sizzles

Front month TTF finding further strength Friday – heading for its first weekly gain this month.

• European gas is currently trading within a range where power producers weigh whether it’s more economical to burn gas or coal.
• High temperatures across Europe are driving power demand for cooling to multi-year highs. High temperatures are expected to persist into next week.
• TTF AUG 23 up 8% at 30.25€/MWh
• TTF WIN 23 up 3.3% at 50.9€/MWh
• Strong confidence remains around Europe to reach full inventories ahead of next winter despite no major flows from Russia this year but fears around a cold winter remain.
• Europe now gets less than 10% of its gas from Russia — compared to more than a third prior to 2022 — but the market is sensitive to any supply disruptions, especially as the Russian grain deal collapse raises tensions.
• JKM-TTF Aug 23 down -0.4$/mmbtu at 1.15$/mmbtu