TTF Near Yesterday's Lows on Weak Near Term Demand

European gas prices are trading just above the lows from yesterday after seeing front month TTF falling below 30€/MWh for the first time since June 2021. The market remains weak weighed down by low demand in Europe and an uncertain economic outlook combined with strong LNG supplies and healthy storage.

• TTF JUN 23 up 0.2% at 29.85€/MWh
• TTF WIN 23 up 0.4% at 47.9€/MWh
• Summer TTF remains weaker than winter with upside risks from a cold winter and potential rebounding Asia LNG demand helping provide some support.
• The latest weather forecast shows temperatures in NW and central Europe moving above normal in the coming days and is expected to boost solar generation near to record highs according to Bloomberg. Temperatures in the Mediterranean will however hold below normal in the coming days although could be closer to normal towards the end of the month.
• Total European LNG sendout has edged higher again this week back over 460mcm/d on 17 May after falling back to around 418mcm/d last week.
• European gas storage injections are still lagging slightly below the five year average level with European gas storage up to 64.58% full on 17 May according to GIE data compared to the five year average of 45.9%.
• Imports from Norway are today down as low as 253mcm/d with maintenance outages at Ormen Lange and Aasta Hansteen adding to the Troll outage into mid June.
• Gas transit flows through Ukraine are today at 41.3mcm/d and Algeria gas flow to Italy at Mazara are down to 58.1mcm/d.