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

European natural gas futures have dropped to €30.5 per megawatt-hour, marking their lowest level since May 2024. This decline is largely attributed to the influx of Liquefied Natural Gas (LNG) and robust pipeline supply from Norway, which have alleviated the seasonal demand pressures. Additionally, mild and windy weather has further reduced consumption. The recent warm conditions in China have allowed more LNG cargoes to be diverted to Europe, thus contributing to the decrease in prices. Europe's LNG imports have reached 101.38 million tons in the first ten months of the year, a significant increase of 16.75 million tons compared to the previous year. Wind power generation remains strong, with forecasts predicting continued high output despite temperatures expected to normalize by Friday. Although the European Union's gas storage sits at 82.61%—below last year's levels—it is showing signs of improvement, with expectations of the storage shortfall narrowing to approximately 10 percentage points later this week. However, new Russian attacks on Ukraine's energy infrastructure are raising concerns that Ukraine might increasingly depend on European gas supplies this winter.