FX.co ★ TTF Prices Rise as Demand Picks Up

European natural gas futures experienced a notable increase of over 4% to €32.8 per megawatt-hour on Monday, registering their most significant daily rise since June 19. This surge is attributed to forecasts of colder weather, which have heightened projections for increased heating demand. In France and Germany, temperatures are anticipated to fall approximately 2°C below the seasonal average starting mid-October. Compounding this, concerns about diminished renewable energy output are exerting additional pressure on demand. On a geopolitical front, Russia's initiation of its most extensive assaults on Ukraine's gas network since the onset of the conflict raises the potential for heightened European gas exports to Ukraine during the winter. Nevertheless, Europe has been proactive in replenishing its gas reserves in preparation for the heating season. Current EU gas storage is at 82.8% capacity, with Italy at 93%, France at 92%, and Germany at 76.3%.