FX.co ★ TTF Prices Move Lower

European natural gas futures have dipped below €34 per megawatt-hour, influenced by robust supply fundamentals that are counterbalancing broader geopolitical concerns. Gas storage across Europe is steadily increasing, aided by diminished demand from Asia, especially China, and substantial pipeline deliveries from Norway, which are nearing full capacity ahead of scheduled maintenance. LNG imports remain strong, surpassing seasonal averages. EU storage levels are approaching 70%, in comparison to 86% at the same point last year, with Germany above 62%, Italy over 81%, and France close to 79%. At the same time, traders are paying close attention to geopolitical developments, particularly the discussions surrounding a potential ceasefire in Ukraine. Although the United States has suggested imposing stricter sanctions on Russian energy trade if no progress is achieved, skepticism regarding the scale or immediacy of such actions has so far tempered market reactions.