FX.co ★ TTF Prices Steady Amid Geopolitical Talks and Supply Concerns

European natural gas futures have recently fluctuated within the €34-36 per megawatt-hour range as markets evaluate geopolitical tensions and developments affecting supply. A primary focus is the possibility of a peace agreement between Ukraine and Russia following discussions between US President Donald Trump and Russian President Vladimir Putin, which have led to immediate ceasefire talks. While a peace deal could potentially lead to the reintroduction of Russian gas into Europe, this move would contradict the European Union's objective to eliminate reliance on Russian fossil fuels by 2027. On the supply front, predictions of unseasonably cool weather in northwest Europe starting May 22, combined with diminished Norwegian gas flows, are exerting additional pressure. Maintenance work at Norway's Kollsnes gas processing facility has commenced earlier than scheduled, with further reductions anticipated through May 21-22. Meanwhile, European Union gas storage levels are currently at only 44% capacity, a significant drop from the 66.5% level recorded this time last year. In response, EU legislators have revised the November 1 gas storage target down to 83% from an earlier goal of 90%.