FX.co ★ TTF Prices Rise for 3rd Session

European natural gas futures have surged past €33 per megawatt-hour, continuing their upward trajectory for the third consecutive session. This increase is attributed to a rise in global LNG demand coupled with supply constraints caused by seasonal maintenance activities. Chinese importers have re-entered the spot market following a period of subdued activity, heightening concerns about increased competition for LNG shipments. Previously, lower prices had facilitated Europe's efforts to rebuild its gas inventories, but current stock levels still linger below the average of the past five years. Now, heightened demand from Asia and decreased Norwegian pipeline flows, compounded by some unexpected outages, may decelerate the pace of inventory replenishment. In parallel, the European Union is gearing up to propose a ban on gas imports via new contracts with Russia, which includes spot market agreements, as part of its strategy to eliminate Russian energy dependency by 2027. Additionally, positive trade signals between the US and China have contributed to a more optimistic market sentiment.