The return of bullish sentiment to global markets caused gas prices on the German and Austrian hubs to continue trading up by midday Wednesday following a strong rally on prompt gas seen Tuesday afternoon.
However, the Dutch TTF day-ahead opened at lower levels due to comfortable UK supply, trading back up towards the highs seen at the previous close as the system turned short.
The Dutch TTF day-ahead gained over Eur1.00 in later trade Tuesday but opened the day at a 45 euro cent discount to the close Wednesday morning. The contract has since traded up over the morning to reach Eur21.30/MWh, 25 euro cent lower than the previous close.
Dutch gas exports through the BBL pipeline fell to zero Tuesday night but a spokesperson for the company was not immediately available to comment on whether this was due to an operational problem, or low customer nominations.
German gas hubs extended gains heard at Tuesday's close to narrow the spread between German and Dutch gas prices. The NetConnect day-ahead firmed 5 euro cent to change hands midday at Eur21.60/MWh while the GASPOOL contract gained 10 euro cent to reach Eur21.55/MWh.
Austria's Baumgarten gas hub saw its day-ahead contract climb 30 euro cent over the morning, following gains of 35 euro cent heard Tuesday, to reach Eur22.00/MWh midday.
News announced late Tuesday that the US Federal Reserve would maintain low interest rates until mid-2013, coupled with positive US stock and Chinese demand data, caused global market sentiment to turn positive.
By late morning September ICE Brent traded up $3.69 at $105.40/barrel offering support to gas contracts on the forward curve. However, price gains were subdued due to low liquidity, a trader said.
"The recent uncertainty in the markets led many market players to close their positions, and few people are ready to reassess things just yet," the trader added.
Both the TTF Winter 11 and Winter 12 contracts traded up 10 euro cent to Eur26.55/MWh and Eur28.05/MWh respectively by midday.
The TTF Cal 12 contract firmed by 5 euro cent to Eur26.45/MWh.
