Approaching cold weather held prompt prices relatively firm on Continental European gas markets for much of Tuesday morning, before the bearish UK NBP hub weighed on sentiment to drag day-ahead gas slightly into negative territory by midday London time, traders said.
A short NBP system Monday supported surging prompt prices across Europe, but as the NBP returned to balance Tuesday morning bullish momentum stalled, sending NBP prices down.
Flows from the Netherlands to the UK ramped up to just under 23 million cubic meters/day, while warmer than average temperatures reduced UK demand.
However, on the Continent temperatures are expected to turn cooler by the week's end holding prices relatively firm and widening the spread between continental and UK gas, a trader said.
The Dutch TTF day-ahead changed hands midday at 15 euro cent lower at Eur24.25/MWh.
"There was an over-reaction in the last hour of Monday which pushed December and Q1 gas up shortly before the close," a trader said. "So we've seen levels on those contracts retract over the day."
The TTF front month contract slipped back 35 euro cent to Eur25.80/MWh, while the the front quarter lost 15 euro cent to trade at Eur26.55/MWh.
On the German gas markets prompt contracts traded a touch lower Tuesday morning. The German NetConnect day-ahead softened 5 euro cent to change hands at Eur24.45/MWh, while the less liquid GASPOOL hub saw its contract remain steady at Eur24.60/MWh.
Temperatures in Berlin are set to drop to 2 degrees Celsius below the seasonal average of 2-8 C Thursday, according to data from forecaster CustomWeather, and will remain cold into the following week.
On the far curve contracts maintained the previous days strong gains as Brent crude continues to rise, reaching $115.88/b by mid morning.
On the Dutch TTF the Winter 12 contract extended the previous day's 40 euro cent gains by a further 10 euro cent to Eur28.50/MWh midday, while the Cal 12 contract held firm at Eur26.45/MWh.
