European natural gas futures rose to €45.8 per megawatt-hour on Tuesday, rebounding from a one-month low of €39 on December 16, driven by concerns over supply.
TTF prices rise on supply risks and cold weather
With a key transit agreement between Russia and Ukraine set to expire in a week, fears of potential disruptions are growing. Forecasts for colder weather across Europe add to the pressure, as gas stockpiles are depleting faster than usual. Ukrainian President Zelensky signaled resistance to allowing Russian gas transit without assurances that the Kremlin won't profit from the war.
Supply halt could have significant impacts
A supply halt could have significant impacts on countries like Slovakia, which still relies on Russian gas and is exploring alternative options. While Europe has reduced its dependence on Russian gas, some nations remain reliant on these flows, and a disruption could increase demand for liquefied natural gas (LNG), heightening competition with Asia for shipments, especially as delays affect LNG expansion projects.
