TTF front-month nears 14-month low
The front-month contract at the TTF gas hub dropped to close to a 14-month low on January 30 of €55/MWh ($635/'000 m3), ICE data showed, on the return of warmer weather that has constrained heating demand.
The January 30 price was the lowest daily weighted average since December 7, 2021. It was also more than six times lower than the record spike recorded in late August. As of 12:10 GMT on January 31, however, the contract had rebounded to €58.4/MWh, amid forecasts that the weather will become colder than previously estimated next week.
European gas prices have seen a more or less steady decline since early December because of an unusually mild winter, subdued industrial demand and ample LNG supply. This is despite Russian gas supply to Europe dropping to a post-Soviet low.
Moving forward, a lot will depend on how LNG supply to Europe is maintained, in light of the anticipated Chinese economic recovery set to drive LNG demand growth in Asia.