FX.co ★ TTF Prices Fall Toward 18-Month Low

European natural gas futures have decreased by 2%, falling to under €31 per megawatt-hour—close to an 18-month low—due to forecasts predicting warmer weather in the coming week, which is expected to reduce heating demand. While there are short-term predictions for cold and calm conditions across Northern and Central Europe until Saturday, temperatures are anticipated to rise afterward, indicating milder weather. Midweek, net EU gas withdrawals are expected to increase moderately following previous hikes, but the market has responded to the warmer weather outlook by lowering prices. Currently, EU gas storage stands at 81.7% capacity, down from last year's 90.7%. Norwegian pipeline flows continue to be stable, and LNG imports remain consistent. Notably, European LNG imports have reached 101.38 million tons this year, an increase of 16.75 million tons from 2024. In response to geopolitical tensions, Ukraine has arranged to receive US LNG via Greece for December 2024 through March 2025 to address winter supply risks.