Prompt gas contracts on Continental European markets opened Monday in line with the high prices heard at Monday's close, but eased back over the morning under downward pressure from bearish UK activity, traders said.
The Dutch TTF day-ahead rallied up to Eur22.95/MWh at the last close, trading even higher Monday morning at Eur23.35/MWh.
However, the UK NBP gas system opened long on strong LNG injection into the system, with further LNG deliveries expected over the coming week, causing the UK and Dutch day-ahead contracts to slip into negative territory by midday. The TTF day-ahead changed hands at Eur22.80/MWh.
"Cold weather is expected for later in the week, which is driving gas demand up," a trader said, "And new forecasts are showing even colder weather following that over the next two weeks."
The German gas markets also held firm at Monday's bullish closing levels at the start of Tuesday, but traded down in line with the Dutch market.
The NetConnect and GASPOOL day-ahead contracts traded flat to each other at Eur22.85/MWh midday, losing 75 euro cents and 55 euro cents respectively.
Temperatures in Berlin are currently 4 degrees Celsius above the seasonal norm of 7-15 C but will slip slightly below the average Friday, and as cold as 4 C below the average by Sunday.
On the forward curve contracts eased back slightly as the euro lost traction against the dollar sending November ICE Brent down 88 cents to $108.07/barrel mid morning.
The TTF Cal 12 fell 5 euro cents to Eur26.50/MWh.
