FX.co ★ TTF Prices Fall Toward 13-Month Low Ahead of Trump-Putin Talks

European natural gas futures have decreased to €31.7 per megawatt-hour, nearing the lowest point since July 2024, as anticipation builds for the upcoming Trump-Putin summit focused on resolving the Ukraine conflict. Although a swift resumption of Russian pipeline gas remains improbable, any modifications to current sanctions could significantly alter the global supply dynamics. Europe predominantly depends on imports from the United States, Qatar, and other regions, competing with Asian markets for liquefied natural gas (LNG) cargoes; last year, Russian supply accounted for less than 20%. Easing sanctions might rejuvenate Russian LNG initiatives, potentially alleviating supply constraints. Nevertheless, the real effects will largely depend on the establishment of a verified ceasefire and commitments to reconstruction. Former President Trump has cautioned of "very severe consequences" should President Putin reject peace terms and has encouraged Europe to increase its procurement of U.S. LNG. Concurrently, European Union gas storage facilities are almost 73% full, with Germany exceeding 65%, Italy surpassing 84%, and France close to 81%.