The TTF contract is a benchmark for the European price level. There were references to relatively moderate temperatures in the market and efforts to curb gas prices.
The gas price traded slightly higher at 104 euros per megawatt hour in the early morning hours, after initially falling to €100 in early trading. Until now, relatively mild temperatures have prevailed throughout the year in Europe. Gas storage facilities in Germany can be filled faster than planned, and the filling level of storage facilities is already well above 95 percent. In addition, the market noted that the possibility of liquefied gas deliveries to begin alleviated concerns about insufficient supply during the winter months.
In addition, EU countries are working on measures to limit the price of gas. Mandatory joint gas purchases and a kind of ceiling price for the European gas exchange TTF are part of a package of measures recently proposed by the EU Commission.
The European gas price has been on a downward trend since the end of August after hitting a record high of 342 euros per megawatt hour. The cessation of natural gas supply from Russia at that time triggered a rapid rise in natural gas prices.
Despite the recent easing, the price of European natural gas is still relatively high. In 2020, the TTF futures contract was still below the EUR 20 mark.
(SDA)