European natural gas futures declined to €45.5 per megawatt-hour, nearing a six-week low, as milder temperatures across the continent eased demand following a recent cold snap.
TTF prices fall toward six-week low
The market is also closely monitoring geopolitical developments, particularly ongoing peace talks aimed at ending the Russia-Ukraine war, with the U.S. urging a resolution and European leaders, including those from Germany, France, and Italy, considering measures to ease storage requirements. These efforts aim to stabilize prices and reduce immediate supply concerns.
Storage levels remain a key focus
Despite recent price relief, storage levels remain a key focus, as EU gas reserves have depleted faster than usual due to an extended period of colder and calmer weather, with current storage levels falling below 41%. This has raised concerns about the region’s ability to replenish stocks ahead of next winter, particularly as uncertainties persist regarding Russian supply flows and competition for LNG imports from Asia. Meanwhile, expectations of increased renewable energy output and steady pipeline flows from Norway and North Africa have helped ease some supply fears. However, traders remain cautious, closely watching upcoming weather patterns, policy decisions, and potential disruptions in global energy markets that could impact price stability in the months ahead.
