FX.co ★ TTF Prices Hover at 3-Week High

European natural gas futures have maintained a position near a three-week peak, approximately €35.5 per megawatt-hour (MWh), influenced by increasing demand from Asia and concerns regarding future LNG supplies. A heatwave sweeping across North Asia has intensified the need for cooling, driving up LNG purchases and even causing some shipments to divert from their European destinations. Consequently, European buyers might be compelled to offer higher prices to secure cargoes and replenish reserves before the winter months. Currently, gas storage in the European Union is about 62% full, below the typical level for this time of year. Additionally, high temperatures in parts of Europe are boosting the demand for air conditioning. However, meteorological forecasts indicate a shift back to seasonal temperatures later in July, which may help moderate further consumption increases. Nonetheless, the potential for upward price pressure is being tempered by global economic concerns linked to former President Trump’s trade tariff escalations.