FX.co ★ TTF Prices Rise to 10-Month High

European natural gas futures experienced a significant increase of 6%, reaching €42.4 per megawatt-hour, marking the highest level since March 2025. This uptick highlights growing supply concerns, driven by declining U.S. liquefied natural gas (LNG) flows and escalating winter demand. In the U.S., gas flows to LNG export facilities dropped to their lowest point in a year due to winter storms disrupting production, subsequently limiting export capacity at a critical time as Europe braces for a severe cold spell. With the cessation of most Russian pipeline supplies following the Ukraine invasion, Europe has become heavily reliant on LNG, which currently satisfies nearly half of its gas requirements. By 2025, the European Union had sourced 27% of its combined gas and LNG imports from the U.S., a significant increase from 6% in 2021, thereby increasing susceptibility to U.S. supply interruptions. Furthermore, forecasts indicate that unusually cold weather will persist into early February, thereby elevating heating demand. Consequently, gas storage levels are depleting swiftly, with EU inventories at 45.6%, a decline from 56.5% the previous year, and notably low reserves in Germany (37.5%), France (36.4%), and the Netherlands (31.1%).