TTF month-ahead prices hit a new 12-year high

The benchmark TTF ICE month-ahead contract (July 21) reached its highest level since October 2008 at €29.40/MWh at the close on Friday, supported by planned outages at LNG import terminals in France and the Netherlands reducing LNG supply, a steady energy complex with gains in oil, coal and EUA prices and the late publication of an unplanned outage in Norway at the Karsto processing plant with a 19 mm cm/day impact from 19 to 22 June. The TTF WIN 21-SUM 22 spread widened further to €9.5/MWh at the close, a level never seen before in European gas markets. Albeit stock levels remain at 2018 lows, they increased at an average pace of 360 mm cm/day so far in June (compared to 300 mm cm/day on average in June 2020) notably as non-residential demand in NW Europe dropped by 16% yoy since the beginning of the month as gas prices are significantly less competitive than a year ago compared to coal.