Prompt prices on Continental European gas markets traded in a narrow range between hubs midday Wednesday, relatively flat to the lower closing levels heard at Tuesday's close, while the forward curve felt increased downward pressure from lower crude prices heard in early trade.
The Dutch TTF day-ahead traded at morning highs of around Eur25.25/MWh after sharp losses in the final hour of Tuesday's trade to close at Eur24.90/MWh. However, the gains proved unsustainable and the contract returned to familiar territory at Eur24.95/MWh midday.
Traders noted that the technical sell-off in the final hours of Tuesday's session helped to reduce continental Europe's strong premium over UK prompt gas, adding that Europe remains stable in terms of gas supply following the return of Norwegian flows through the Europipe line, and the temporary closure of the BBL pipeline exporting Dutch gas to the UK.
The German NetConnect and GASPOOL hubs saw their respective day-ahead contracts trade midday flat to each other at Eur24.90/MWh, both softening 5 euro cent from the previous close.
France continued the trend, changing hands midday flat to the TTF at Eur24.95/MWh, shedding 15 euro cent from Tuesday's close.
On the TTF forward curve, contracts extended the losses heard over consecutive trading days this week as a firmer dollar weighed on Brent crude futures early Wednesday morning following bullish overnight trade.
At 0540 GMT, October ICE Brent crude futures was 56 cents/b (0.50%) lower at $111.33/b, setting a bearish tone at the beginning of the day's session, and remaining in negative territory until shortly before midday when prices lifted above the previous close.
TTF Winter 12 was heard at Eur28.65/MWh Wednesday morning, down 15 euro cent from Tuesday's close, while the Cal 12 changed hands 20 euro cent lower at Eur27.35/MWh.
