FX.co ★ TTF Prices Extend Losses to Over 6-Month Low

European natural gas futures experienced a decline of over 7%, falling to under €34/MWh. This follows a 10% decrease the previous week, bringing prices close to their lowest point since September 2024. The drop is primarily attributed to concerns that the ongoing global trade conflict might dampen industrial activity, consequently diminishing gas demand. Tensions intensified as China declared a 34% tariff on all U.S. imports, mirroring tariffs imposed by the U.S. This escalation has heightened worries about inflation and slower economic growth, potentially driving energy-intensive industries to scale down operations and reduce future energy consumption. Furthermore, increases in oil production beginning in May, along with potential adjustments in European storage targets, may lead to an expanded gas supply. The market also expects an uptick in LNG shipments to Europe, spurred by reduced demand in China, with expectations of weak Asian LNG consumption in 2025 possibly sustaining lower European gas prices.