European natural gas futures rose 6% to around €44 per megawatt-hour on Thursday, recovering from a two-month low of €41 following a sharp 12.8% drop in the previous two sessions.
TTF prices rebound from two-month low
The rebound was fueled by rising concerns over a potential US-EU trade dispute, which could drive up LNG costs. The US remains Europe's primary supplier of liquefied natural gas, and President Trump’s recent threat to impose 25% tariffs on EU imports, including cars, starting April 2, has added uncertainty to the market.
Gas prices below February peak
Despite the recovery, gas prices are still more than 25% below February’s peak of €59, reflecting the impact of milder-than-expected weather, the possible relaxation of EU storage mandates, and the ongoing US-led peace talks in Ukraine. Mild winter conditions have reduced the immediate demand for heating, easing supply concerns. Additionally, as European storage levels remain below 40%, several major countries are considering relaxing storage requirements to help stabilize prices and ensure adequate supply as they prepare for next winter. These measures would likely provide some relief to consumers and industries, helping to mitigate the effects of any potential supply disruptions in the coming months.
