FX.co ★ TTF Prices Ease after 2-Day Gain

European natural gas futures experienced a decline to approximately €33.2 per megawatt-hour on Wednesday, following a brief two-day increase. This downturn can be attributed to sufficient inventory levels counterbalancing the anticipated rise in demand. Currently, storage levels throughout the EU are robust, resting at 82.9% of total capacity, with Italy at 93%, France at 92.5%, and Germany at 76.2%, which alleviates concerns over winter supply. Nevertheless, forecasts of cooler weather conditions anticipated for mid-October—in particular, temperatures in France and Germany expected to be around 2°C below the seasonal average—are likely to escalate heating requirements. Concurrently, Russia's largest wave of attacks on Ukrainian gas infrastructure since the onset of the war has sparked fears regarding possible supply interruptions and increased European gas exports to Ukraine as winter approaches. Looking forward, global LNG liquefaction capacity is expected to expand by 60% by 2030, with half of this increase originating from the United States, potentially leading to an oversupply situation. Market traders are projecting that demand will not keep pace, which could exert downward pressure on prices in both Asia and Europe.