TTF Resumes Decline with Healthy Supplies to Cover Muted Demand

TTF has reversed the initial gains on the day to resume the bearish trend in place since mid October amid healthy supplies, high storage and muted demand and despite slightly cooler weather forecast in January.

• Front month is heading for another net decline on the week having fallen from a high of 37.25€/MWh on Dec 27 but is holding just above the lowest since early September of 32.1€/MWh from Dec 19.
• Norwegian supplies up near yearly high levels and muted demand have enabled lower LNG imports supplies in the last week. LNG imports averaged 345mcm/d in the week to Dec27 compared to 426mcm/d in the first half of the month.
• LNG on water remains at the top end of the previous five year average despite falling over the last week back to 3.149m metric tonnes according to Bloomberg.
• Uncertainty over future Russian LNG supply is providing some price support as Arctic 2 LNG faces potential delay due to US sanctions according to Kpler.
  • TTF FEB 24 down -1.9% at 33.01€/MWh
  • TTF SUM 24 down -2.3% at 32.7€/MWh
  • TTF WIN 24 down -1.5% at 37.7€/MWh

Source: LNG