The prompt contracts on the European gas trading hubs plummeted at the end of the week, on forecasts of warmer weather for the weekend and after, while comfortable supply coupled with reduced demand has eased pressure on prices, traders said.
At 1200 London time Friday, the French PEG Nord day-ahead contract heard the most pronounced drops, falling Eur1.35 on the day to Eur22.50/MWh.
The gas contracts for next day delivery on the German NetConnect and GASPOOL followed the bearish sentiment, falling 80 and 75 euro cent day-on-day respectively. The NCG day-ahead settled at Eur23.40/MWh, while the GASPOOL changed hands at Eur23.35/MWh.
The Dutch TTF day-ahead contract dropped by a similar amount, 75 euro cent from Wednesday's market close, to Eur23.20/MWh.
"Prices on the European gas prompt have fallen mainly because everything in terms of supply is fine," a trader said.
"Coupled with the warmer weather, this has caused a subdued demand for gas, and much more comfortable system," the trader added.
Temperatures in Europe are forecast to be at around seasonal averages Friday, according to data by CustomWeather. Paris and Berlin remain 1 degree Celsius below what is normal for the season, and Amsterdam is forecast to remain at averages of 4-14 C.
The weather will ramp up slowly through the weekend, reaching 2 C above the norm in most markets by Sunday. However the highest temperatures are expected for Tuesday, where Berlin will see the weather at 5 C above average, while Amsterdam will be 4 C above and Paris 3 C above normal.
The Dutch TTF front-month contract dropped with the prompt midday Friday, as warmer temperatures are expected to ease demand through to May.
TTF May dropped by 15 euro cent from Thursday's close to trade at Eur23.05/MWh.
Further out on the forward curve, the Dutch TTF Cal 12 contract rose by 20 euro cent to Eur26.70/MWh.
