FX.co ★ TTF Prices Fall Below €30/MWh

European natural gas futures have decreased by over 1% to dip below €30 per megawatt-hour, marking the lowest level since May 2024. This decline is largely attributed to an increase in imports and improved diplomatic efforts aimed at resolving the ongoing Russia-Ukraine conflict, fostering a more optimistic sentiment in the market. After weeks of price stability, traders are navigating the balance between ample supply and fluctuating winter weather predictions. The recent uptick in liquefied natural gas (LNG) inflows and Norwegian pipeline deliveries, coupled with forecasts of milder temperatures in early December, have alleviated worries about depleted inventories and bolstered Europe's winter energy security. Meanwhile, peace talks in Geneva have exerted additional downward pressure on prices, with developments in US-Ukraine negotiations indicating potential progress. Nonetheless, any resolution would still require concurrence from leaders in Kyiv, Washington, and Moscow. Should an agreement be reached, it could significantly impact global energy distribution prior to the anticipated launch of new LNG facilities next year. As Europe gradually reduces its reliance on Russian energy, which now constitutes a mere 10% of its total imports, it remains engaged in a competitive quest for alternative gas sources.