TTF Resumes Bearish Trend on Strong Supply and Subdued Demand

TTF resumes the bearish trend having fallen over 10% last week to set new recent lows once again. Weak summer prices are driven by strong LNG supplies amid low demand from Asia, high seasonal storage levels, and muted demand with limited pickup in industrial demand despite the lower prices and increasing alternative power generation.

• TTF JUN 23 down -2.7% at 31.89€/MWh
• TTF WIN 23 down -4.5% at 49.78€/MWh
• TTF SUM 24 down -3.8% at 50.5€/MWh
• European LNG imports remain strong with sendout back up to over 450mcm/d over the weekend after drifting down to 415mcm/d last week.
• Norwegian imports are today edging slightly higher up to 298.5mcm/d but seasonal maintenance works are expected to restrict output into the start of June.
• Steady injections into European gas storage have built stocks up to 63.32% full on 13 May according to GIE data compared to the five year average of 44.45%.
• The latest weather forecast shows below normal temperatures in western and central Europe this week before recovering above normal over the coming weekend.
• Gas transit flows through Ukraine are today at 40.3mcm/d and Algeria gas flow to Italy at Mazara back down to 74mcm/d.