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Volatile Trading Sees TTF Fall Back Below 30€/MWh

NATURAL GAS

TTF front month falls back below 30€/MWh in volatile trading as the historic 30 day volatility rises to the highest since early December at 116%.

  • Front month has bounced between a low of 22.85€/MWh and high of 33.4€/MWh so far this month with supply concerns amid competition from Asia and ongoing Norwegian maintenance offset by high storage and low demand.
  • “European industrial demand for natural gas has failed to show any meaningful recovery so far,” said Citigroup in a note.
  • Moves in the winter 23 contract have been more muted with the Q1 23 still holding a strong premium of just below 16€/MWh over Q3 23 despite edging lower since a peak of 21.6€/MWh in May.
  • Global LNG gas supplies could tighten this winter due to extreme weather or production issues warned CEO of Tokyo Gas Co.
    • TTF JUL 23 down -8.1% at 29.45€/MWh
    • TTF WIN 23 down -3.3% at 44.31€/MWh
    • TTF SUM 24 down -3.2% at 43.91€/MWh

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