FX.co ★ European Gas Holds Below €32

In late October, European natural gas futures dipped below €32 per megawatt-hour, maintaining a constrained trading range and marking an 18-month low. This trend aligns with moderate mid-autumn demand amidst a robust supply of liquefied natural gas (LNG). Forecasts project that temperatures across continental Europe will remain above average into early November, reducing the need for gas-heavy heating systems. Additionally, reports from Equinor and the TEA highlighted a surge in LNG capacity, which mitigated the impact of bullish speculations on natural gas contracts. This rise in capacity is driven by strong production and export prospects from the United States and the Middle East. These dynamics have counterbalanced the impact of lower natural gas storage levels in the European Union as the region prepares for the higher-demand winter months. Recent figures revealed that gas storage facilities have shifted to net outflows, operating at 83% capacity, roughly 12 percentage points lower than the same period last year. Looking ahead, the European Union plans to phase out Russian LNG imports by the beginning of 2027, eliminating around 17 billion cubic meters of supply.