Subdued trading activity across Continental European gas markets held contract prices in a tight range Monday morning as demand dips ahead of mild expected weather, and available gas supplies remain high.
"There's been little activity this morning which has kept prices in a similar range to levels at Friday's close," a trader said.
"Although mild weather forecasts are turning the prompt slightly bearish, crude prices are edging higher which should support the forward curve," he added.
The Dutch TTF day-ahead softened 5 euro cent from Friday's close to Eur24.20/MWh, while the November contract continues to trade down as the month's end approaches, shedding 20 euro cent to Eur26.05/MWh midday.
Although the UK's NBP system is slightly short this morning due to lower LNG inputs, prices have remained steady offering little direction to sentiment on the Continental hubs. Gas flows from the Netherlands into the UK via the BBL pipeline climbed from zero on Friday to around 8.3 million cubic meters/day Monday morning. In Germany, the NetConnect and GASPOOL day-ahead contracts narrowed the 50 euro cent gap between them at Friday's close to change hands midday at Eur24.90/MWh and Eur25.00/MWh midday.
The French PEG Nord heard the strongest losses by midday dropping 60 euro cent as temperatures in the country's capital are expected to reach 2 degrees Celsius above the seasonal norm of 8-14 C Tuesday.
Temperatures will turn mild over the week across most major European cities. In Amsterdam and Berlin temperatures will push above the seasonal norm of around 8-14 C Wednesday, according to forecaster CustomWeather, and will remain at these levels through into the weekend.
Although bearish factors weigh on prompt sentiment, the forward curve is expected to firm on stronger crude prices, but remained subdued on low liquidity.
At 0855 GMT, December ICE Brent was up 28 cents at $109.84/barrel as optimism grows regarding a positive conclusion to current eurozone bailout plans.
The TTF Cal 12 held firm to Friday's close Eur26.05/MWh midday.
