ELS #Energy - Energy supply high, for now

Last week, 95%-full European natural gas storage, combined with low demand given mild weather and an abundant supply of LNG awaiting discharge, saw the Dutch TTF day-ahead gas contract price drop to an 18-month low of €21/MWh. Nordic power for near-term delivery traded below PPA prices towards the end of October.

This week, day-ahead gas prices remain half the level of month-ahead ones, as rising demand is expected with falling temperatures as the month wears on and winter approaches.

Week ahead, we will be watching for signals that gas prices will increase, as colder weather coupled with insufficient measures to cut gas consumption are expected to once again put pressure on the energy system.

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