FX.co ★ TTF Prices Fall to 8-Week Low

European natural gas futures have declined to approximately €33 per megawatt-hour, marking an eight-week low. This decrease is attributed to a steady supply and diminishing geopolitical tensions. A ceasefire facilitated by U.S. President Trump between Iran and Israel has alleviated the risk premium associated with potential disruptions in the Strait of Hormuz—a critical passageway for a significant portion of the global liquefied natural gas trade. Concurrently, China's lukewarm demand for LNG, influenced by its economic slowdown and increased tariffs from the United States, has resulted in an excess supply of gas available to European markets. Furthermore, the European Union has successfully negotiated an agreement to ease gas storage regulations, permitting member countries to achieve a 90% storage capacity target between the months of October 1 and December 1, rather than maintaining this level throughout the entire season.