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

European natural gas futures fell to approximately €30 per megawatt-hour on Friday, marking the lowest level since May 2024. This decline aligns with renewed momentum towards peace negotiations involving Ukraine, the US, and Russia, alongside diminished demand forecasts. President Zelenskiy has expressed willingness to engage in peace discussions influenced by the US and Russia, which raises the prospect of lifting sanctions and potentially increasing the supply of Russian energy in global markets. Simultaneously, weather forecasts for late November and early December indicate a return to average or slightly warmer temperatures in northwest Europe, which is expected to reduce heating demand. Nonetheless, short-term weather predictions have been volatile, prompting caution among traders. During the current cold spell, gas inventories are decreasing, with storage levels falling below 81%, compared to about 90% at the same time last year.