Gas prices on the European prompt markets fell sharply Wednesday, extending the previous day's steep losses, on reduced demand and increased Norwegian flows.
The day-ahead gas contract in the Netherlands TTF hub traded below Tuesday's price of Eur19.95/MWh in the first half of Wednesday's session, and by midday was down at Eur19.60/MWh, losing 35 euro cent on the day. The spot contract fell below the Eur20/MWh price Tuesday for the first time since December 2011, Platts data showed.
In Germany, the NetConnect next-day gas price tumbled to Eur20.10/MWh, shedding more than half a euro in value from Tuesday's close of Eur20.65/MWh. The German GASPOOL day-ahead contract changed hands at Eur20.15/MWh at 1200 London time, sharply lower than Tuesday's price of Eur20.85/MWh.
Front-month contracts followed spot prices lower but held a slight premium to the day-ahead price Wednesday.
The TTF May gas contract was last seen trading at Eur19.90/MWh, down 80 euro cent on the day, while the same front-month contract on NetConnect erased 85 euro cent in value to trade at Eur20.20/MWh at midday.
Gas demand for storage injection was down this summer as the mild winter season resulted in higher stocks in storage, while weather forecasts continue to predict above average temperatures.
According to Gassco's website, gas flows from Norway into the Dornum and Emden terminals at the Dutch/German border rose to around 150 million cu m/d at 1230 London time, up from around 130 million cu m seen earlier in the week.
Amsterdam and Berlin will experience temperatures 7 degrees Celsius above norms of 12/4C and 12/2C respectively Thursday, CustomWeather data showed.
