Sharp correction for TTF prices as they slump by almost 8%
As always several factors were at play:
(1) EU storage targets: there is a growing call from Member States (including France and Germany) to loosen the EU’s storage fill targets. And while TTF prices plummeted, seasonal price spreads improved from -€5/MWh last week to €2/MWh, as the market now expects less injections pressure;
(2) Peace talks: President Trumps announcement on potential peace talks with Putin is bringing back questions on Russian gas, which might be part of the bargain package;
(3) US LNG breaking new records, with Plaquemines LNG ramping up its operations;
(4) Hoarding: with TTF rising to its highest level since Apr23, many market players might fell that this is the right moment to cash.