Italian PSV: Curve falls on gas and oil markets
Prompt and near curve contracts on the Italian OTC market firmed at the beginning of the two-week period on the back of a higher oil-indexed Gas Release formula and a more bullish TTF. However a bearish undertone still pervaded the market, which was described as balanced-to-long, and as the month drew to a close, the Italian OTC curve shed ground amid further oil losses and a general bearish sentiment prevailing across the northwest European hubs. Market sources also continued to describe the lack of buying interest in Italy, which was apparent in the country’s stocks hovering around 100% fullness and relatively mild temperatures.
Some also pointed to Eni’s failure to sell its lots of import gas in a recent auction as proof that buyers were not going to be tempted in paying over the odds for the PSV gas, which one source described as too expensive.
Moreover, the Italian ministry of economic development (Mse) told ICIS Heren it did not plan to force Italian gas importers to maximise their imports this winter under the maximisation decree as evoked over the past two years (see Briefs in this issue, page 8).
On the prompt, Day-ahead traded on Wednesday 22nd October at PSV at EUR 33.00/MWh in 120 MW, while WDNW dealt at EUR 34.65/MWh in 30 MW on the same day. On the curve, there were no reported trades in the final week, but dealers agreed there was some definite downward pressure week-on-week.
On the Gries Pass border, where gas from northwest Europe enters Italy, December was heard trading on Tuesday 21st at EUR 35.00/MWh in 30 MW, before dipping slightly to deal at EUR 34.80/MWh. Further out, Calendar ‘09 was heard trading at Gries Pass at EUR 32.35/MWh in 30 MW.
Storage operator, Stogit, announced that stocks had risen to 99.4% full and had increased the expected capacity level for the end of October to 100.4% compared to original forecasts.
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