FX.co ★ TTF Prices Rise Further to 6-Week High

European natural gas futures surged to a six-week peak, reaching €33.5 per megawatt hour on Tuesday. This follows a significant 5.3% increase from the previous trading session, marking the most substantial daily gain since June 19. The rise was fueled by forecasts of colder weather, which are anticipated to drive increased heating demand. Specifically, temperatures in France and Germany are expected to be approximately 2°C below the seasonal averages from mid-October. Additionally, reduced renewable energy production is likely to further intensify gas consumption pressures. In parallel, Russia's most extensive assault on Ukraine's gas infrastructure since the onset of the war has heightened fears of potential supply interruptions, contributing to a pressing need for enhanced European gas exports to Ukraine this winter. Despite these concerns, storage levels across Europe remain robust ahead of the heating season. European Union inventories are at 82.8% capacity, with Italy's storage at 93%, France at 92%, and Germany at 76.3%.