European natural gas futures have been trading above €43.5 per megawatt-hour, nearing their highest level since November 2023, driven by increased demand due to colder weather.
TTF prices stay near year high
The drop in temperatures, coupled with weak wind power generation, has led to higher gas consumption for electricity. Forecasts indicate that temperatures will remain in the low single digits until late December. Gas storage withdrawals have been ongoing since November 3, with European reserves currently 93.04% full.
War still in focus
Market uncertainty is further compounded by concerns over a potential halt in the Russia-Ukraine gas transit agreement. However, supplies from Norway and LNG shipments continue to flow steadily. In response, Slovakia’s SPP is taking proactive measures to secure its gas supply, including a pilot deal with Azerbaijan’s SOCAR, in preparation for a possible disruption of Ukrainian transit.
