European natural gas prices held steady at around €35 per megawatt-hour, finding a floor as storage levels continue to climb thanks to consistent LNG imports. Despite sporadic global supply disruptions, LNG deliveries to Europe have remained slightly above seasonal norms, providing a crucial buffer against potential market tightness.
TTF prices steady as LNG imports rise
Storage facilities are currently 37% full following the winter drawdown — a relatively healthy position compared to past years — but market participants remain focused on the pace of replenishment needed ahead of the next heating season.
In an effort to ease potential supply pressures and market volatility, EU member states recently agreed to introduce more flexible storage rules. Under the revised framework, countries will be permitted to fall up to 10 percentage points short of the 90% storage target by November if adverse market conditions, such as unexpected supply disruptions or surging demand, materialize. This move is seen as a pragmatic adjustment, aiming to balance energy security goals with the realities of a volatile global gas market.
Broader risks continue to loom
However, broader risks continue to loom. Lingering concerns over a possible global trade war intensified after Beijing issued a warning on Monday, threatening retaliation against countries that align with Washington’s efforts to economically isolate China. Escalating trade tensions could have significant ripple effects on global energy markets, potentially disrupting LNG flows, altering commodity demand patterns, and complicating Europe’s efforts to secure sufficient energy supplies ahead of winter.
For now, sentiment in the European gas market remains cautiously stable, but traders are bracing for a more volatile second half of the year, driven by geopolitical risks, summer cooling demand, and the ongoing race to refill storage ahead of the colder months.
