FX.co ★ TTF Prices Fall to 1-1/2-Year Low

European natural gas futures have decreased to below €31 per megawatt-hour, nearing their lowest levels since May 2024. This decline is largely attributed to consistent arrivals of LNG and robust Norwegian pipeline flows, which have softened the typical seasonal shift. Additionally, mild, windy weather has kept demand low. In North Asia, LNG prices have also dropped due to warmer weather in China reducing consumption, thereby releasing more cargoes for Europe. As a result, European LNG imports have surged to 101.38 million tons in the first ten months of the year, an increase of 16.75 million tons compared to the previous year. Wind generation continues to be strong, with forecasts predicting sustained high output. Despite these conditions, temperatures are expected to normalize from Friday. Currently, EU gas storage is at 82.61 percent, which, while lower than the levels of the previous year, is showing improvement. This storage deficit is likely to narrow to around 10 percentage points this week. Meanwhile, recent Russian attacks on Ukrainian energy sites have sparked concerns that Ukraine might increasingly depend on European gas supplies this winter.