European gas prices continued to fall to an 18-month low, as peace talks and mild weather forecasts pressured the market and widened the JKM-TTF spread, raising the risk of a slowdown in LNG flows, ING commodities experts Ewa Manthey and Warren Patterson note.
Peace talks and fair weather influence TTF prices
“European gas prices continued to sell off, with the Transfer Facility (TTF) falling 1.2% on the day, leaving the market at an 18-month low. Peace talks will put pressure on the market, while weather forecasts point to milder than usual conditions for early December.”
“Weakness in the European market has widened the spread between Japan and Korea and the TTF index. If this trend continues, we could see LNG flows to Europe start to slow.”
