Forecasts of milder temperatures for the coming week caused most day-ahead contracts in Continental Europe to trade down by midday Monday, London time, from higher opening prices.
However, prices in German markets have still showed gains midday Monday from the the previous Friday's close because temperatures are expected to become colder before they rise later in the week.
The Dutch TTF day-ahead contract opened Monday at Eur27.50/MWh but through the course of the morning traded down by Eur1.90 to a midday price of Eur25.60/MWh.
"Weather forecasts came out this morning showing warmer weather for next week so the market is reacting accordingly," said a trader. Although temperatures in the Netherlands are currently 7 degrees Celsius below seasonal norm, they are expected to rise to 2 C below seasonal norm by December 23 and remain warmer for the rest of the week.
In Germany temperatures are also shown as being 7 C below seasonal norm in Berlin for Monday. However, forecast temperatures of 10 C below the seasonal norm are expected on Tuesday before temperatures rise through the rest of the week.
As a result of the forecast drop in temperatures, the German GASPOOL day-ahead contract gained 90 euro cents from Friday's close to a midday price of Eur25.50/MWh. The Net Connect Germany day-ahead contract closed 35 euro cents higher at Eur25.45/MWh midday Monday than Friday's close.
However, France's PEG Nord day-ahead contract showed losses from Friday's close of 50 euro cents to trade at Eur25.00/MWh midday Monday.
The trader adds that market liquidity is tighter due to market participants beginning to close their positions in preparation for year-end.
In particular very little activity has been seen in the day-ahead contracts for both the Austrian Baumgarten market and the Italian PSV market.
However, prices in German markets have still showed gains midday Monday from the the previous Friday's close because temperatures are expected to become colder before they rise later in the week.
The Dutch TTF day-ahead contract opened Monday at Eur27.50/MWh but through the course of the morning traded down by Eur1.90 to a midday price of Eur25.60/MWh.
"Weather forecasts came out this morning showing warmer weather for next week so the market is reacting accordingly," said a trader. Although temperatures in the Netherlands are currently 7 degrees Celsius below seasonal norm, they are expected to rise to 2 C below seasonal norm by December 23 and remain warmer for the rest of the week.
In Germany temperatures are also shown as being 7 C below seasonal norm in Berlin for Monday. However, forecast temperatures of 10 C below the seasonal norm are expected on Tuesday before temperatures rise through the rest of the week.
As a result of the forecast drop in temperatures, the German GASPOOL day-ahead contract gained 90 euro cents from Friday's close to a midday price of Eur25.50/MWh. The Net Connect Germany day-ahead contract closed 35 euro cents higher at Eur25.45/MWh midday Monday than Friday's close.
However, France's PEG Nord day-ahead contract showed losses from Friday's close of 50 euro cents to trade at Eur25.00/MWh midday Monday.
The trader adds that market liquidity is tighter due to market participants beginning to close their positions in preparation for year-end.
In particular very little activity has been seen in the day-ahead contracts for both the Austrian Baumgarten market and the Italian PSV market.
