FX.co ★ TTF Prices Rise to 5-1/2-Month High

European natural gas futures have risen to approximately €35 per megawatt-hour, marking their highest point since July 31, driven by forecasts of colder weather that have intensified concerns regarding supply and storage. As temperatures are expected to decline further towards the end of the month, heating demand is likely to increase, prompting faster withdrawals from already constrained storage facilities. Currently, EU gas inventories stand at about 52.5% capacity, significantly below the 65% benchmark recorded at this time last year, making the market more vulnerable to weather-related disruptions. Additionally, liquefied natural gas (LNG) exports from the United States, the leading global exporter, have dropped to a two-month low due to outages at key terminals in Texas. Simultaneously, geopolitical tensions linked to disturbances in Iran continue to threaten the stability of global LNG trade, despite the lessening imminence of US intervention. Compounding the situation, an approaching cold wave in parts of Asia could heighten regional heating demand, further tightening the worldwide LNG market and increasing competition for cargoes.