Prompt prices on the Continental European markets firmed Tuesday morning as cooler temperatures returned following weeks of warm weather. However, the strengthening US dollar currency has forced the price of Brent crude down causing forward curve contracts to soften in response.
On the German markets, the day-ahead contracts traded up over the morning. The German NetConnect day-ahead moved up 25 euro cent from the price assessed at Thursday's close to trade midday Tuesday at Eur22.70/MWh. The GASPOOL contract traded flat to the NCG at Tuesday lunchtime, representing a rise of 70 euro cent from Thursday's close.
The Baumgarten market followed suit, gaining 40 euro cent on its day-ahead contract from Thursday's close to change hands midday at Eur24.90/MWh.
Temperatures in Germany are currently below the seasonal average of 4 - 18 degrees Celsius, according to forecaster CustomWeather. Berlin is 5 degrees C under the average and will drop to 6 degrees C below the norm Wednesday. Dusseldorf and Frankfurt are expected to reach 7 and 8 degrees C below the norm respectively Wednesday boosting the need for gas-heating and supporting prompt prices.
On the Dutch TTF the day-ahead price has traded flat to its Thursday close of Eur22.40/MWh.
"Big producers are selling on the TTF," a trader said, adding that this may be subduing prompt price gains in the market.
In addition, temperatures in the Netherlands are slightly warmer than those elsewhere in Europe. Amsterdam is currently 4 degrees Celsius below the seasonal norm but will rise to 3 degrees below the average Thursday.
The TTF forward curve felt downward pressure due to the declining price of Brent crude. In late morning trade, June ICE Brent traded $1.37 lower at $123.75/barrel. The falls are said to be due to the strengthening US dollar which gained ground following the killing of al-Qaeda leader Osama bin Laden over the weekend.
The TTF Cal 12 contract traded down 20 euro cent from Thursday's close to Eur26.60/MWh at lunchtime Tuesday.
