Prompt gas prices across the Continental European markets eased back Monday morning under downward pressure from the UK's long NBP system, and weaker euro currency and crude prices, traders said.
The UK's NBP system turned long Monday morning as flows from Norway ramped up after a week of reduced supply, adding length to a well-supplied system and forcing prompt prices down.
"In addition to greater gas supplies flowing into the UK, temperatures are warm, storage is healthy and oil is coming down slightly - all of which has caused prices to come off over the morning," a trader said.
The Dutch TTF day-ahead contract slipped back 15 euro cent to Eur21.50/MWh while the market's front month contract traded down 30 euro cent to Eur21.50/MWh at midday.
The German gas markets followed the downturn in Dutch and UK prompt prices. The GASPOOL day-ahead changed hands at a slight premium to the TTF by midday at Eur21.60/MWh, shedding 15 euro cent from the previous close.
Meanwhile the German NetConnect day-ahead softened 5 euro cent from Friday to Eur21.95/MWh midday.
Gas contracts on the forward curve lost value over the morning in line with the weaker euro currency and price of Brent crude.
September ICE Brent traded 65 cents lower at $118.02/barrel in morning trade before falling further to around $117.30/b by lunchtime.
Although the previous week's announcement of a second EU bailout package for Greece offered support to both crude and currency prices, concerns regarding eurozone debt persists weighing on the euro currency and turning Bret crude prices down.
The TTF forward curve softened slightly Monday morning.
Winter 11 shed 10 euro cent from Friday's close to change hands at Eur27.30/MWh, while the Cal 12 contract traded 5 euro cent lower to Eur27.55/MWh.
