FX.co ★ TTF Prices Edge Up

European natural gas futures saw a slight increase to €34 per megawatt-hour on Monday, following a 5.5% decline the previous week. Traders are currently balancing new European Union sanctions on Russian oil with broader concerns regarding global fuel demand. Significantly, the EU's 18th set of sanctions specifically targets refined Russian oil exports, affecting entities like India’s Nayara Energy, while also imposing stricter banking restrictions and implementing a reduced price cap on Russian crude. The United Kingdom has aligned its efforts with these measures. Despite these sanctions, Russia has claimed its economy has developed resilience against Western penalties. In addition, traders are keeping a close watch on potential U.S. tariffs, with EU diplomats preparing for a possible no-deal situation under President Trump’s administration as the August 1 deadline approaches. On the supply side, Norwegian gas exports have surged following the resolution of outages at both the Nyhamna and Kollsnes facilities, leading to increased availability of gas. In Germany, forecasts indicating stronger wind conditions are likely to reduce the demand for gas used in power production. In Asia, demand for liquefied natural gas (LNG) has stabilized after a recent heatwave, thereby alleviating some pressure on European LNG imports. Moreover, the adoption of flexible EU storage targets has lessened the competition for LNG resources.