Gas prices in the Netherlands drop below EUR 100 / MWh for the first time since the beginning of the war in Ukraine. This is due to the fact that warehouses in Europe are full, with a very warm October and quite good weather forecasts for the coming months. Moreover, EU countries are still working on diversifying supplies and discussing the imposition of price caps. It is not known, however, whether in the EU this would apply to the entire gas market or only to the Russian one, as imposing a maximum gas price only on gas from Russia could result in lower transfers to the countries of Southern Europe.
In addition, hourly gas prices drop below 0! This is something similar to what we saw on the WTI crude oil market in 2020 and the Canadian crude oil market. It is worth noting that warehouses in Europe are 93% full, and the likely inclusion of solar and wind power plants at this time means that the use of gas power plants is decreasing, hence the supplier may be willing to pay for the collection of gas. However, we should treat it as an anomaly, taking into account that sooner or later the heating season in Europe will begin.
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TTF gas drops below EUR 100 / MWh. Source: Bloomberg, Twitter
Hourly gas prices drop below 0! However, we should treat this as a short-term anomaly given the upcoming weather factors. Source: ICE, Twitter
NATGAS - Gas in the US is stabilizing after the recent sharp falls. The heating season has not started yet, therefore it cannot be ruled out that the latest selling pressure will intensify. Source: xStation5
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