FX.co ★ TTF Prices Rebound from 8-Week Low

European natural gas futures have risen to €34 per megawatt-hour, climbing from an eight-week low of €33, as market participants evaluate changing weather conditions and supply factors. The recent heatwave across Europe is forecasted to subside, reducing the demand for cooling. However, an increase in wind power generation in Northwestern Europe may further decrease the reliance on natural gas by power plants. Supply levels remain steady, with regular exports from Norway and continuous LNG dispatches. On the policy front, the European Commission is preparing to propose a legally enforced climate target for 2040, aiming to reduce net emissions by 90% compared to 1990 levels, while allowing some industry-specific flexibility. Last week, natural gas prices fell by approximately 18% following a ceasefire agreement between Iran and Israel, which alleviated concerns over potential disruptions in the Strait of Hormuz. Moreover, China's sluggish demand for LNG, stemming from its slowing economy and increased tariffs on U.S. goods, has redirected more gas to Europe, amplifying supply and exerting downward pressure on prices.