FX.co ★ TTF Prices Rise for 2nd Day

European natural gas futures have risen above €36 per megawatt-hour, experiencing gains for the second day in a row. This upward trend is attributed to hotter-than-usual weather across Europe, which is elevating the demand for air conditioning. Projections suggest that temperatures will stay high for the next two weeks, with cooling demand predicted to hit its highest level since July 2022. This increase in demand coincides with the onset of peak summer seasons in both Europe and Asia, heightening competition for the already limited global supply of liquefied natural gas (LNG). While Europe's gas storage has exceeded 50%, it still falls short of the usual levels, as last winter left reserves at only 33.5%. The cessation of the Ukraine transit agreement and the subsequent stoppage of Russian pipeline deliveries have heightened Europe's dependency on LNG, which has been more accessible due to tepid demand from Asia. Nonetheless, the supply is somewhat restricted due to ongoing maintenance activities in Norway.