Supply caps European price gains despite higher demand

The coldest weather so far this winter has failed to heat up the European gas market. Colder temperatures have hit much of Europe over the past week and have significantly increased heating-related demand, as well as overall demand in some markets. UK gas demand was 22% above the seasonal norm early in the week as below-average temperatures boosted consumption. However, ample supplies – including greater volumes from Norway and the Netherlands – have balanced the market, limiting price gains. The NBP day-ahead was just under 33 p/th ($4.70/MMBtu) on Tuesday, while the TTF was less than 31 p/th.