FX.co ★ TTF Prices Volatile at Near 2-Week Lows

European natural gas futures remained volatile, hovering around €32.5 per megawatt-hour, close to a two-week low, as markets assessed the impact of rising temperatures, strong supply, and diminishing geopolitical threats. This week, higher temperatures could potentially increase the demand for cooling, while Electricite de France SA has issued warnings that it might need to curtail nuclear output due to elevated river temperatures. Nevertheless, gas storage across Europe is steadily improving, driven by weak demand from Asia, especially China, alongside robust pipeline deliveries from Norway. Liquefied Natural Gas (LNG) imports also surpass seasonal averages. EU storage levels are approximately 72%, compared to 87% at this point last year, with Germany above 64%, Italy over 83%, and France around 80%. Meanwhile, traders are closely monitoring the possibility of a peace agreement between Russia and Ukraine, with Donald Trump scheduled to meet with Vladimir Putin on August 15 in Alaska. A successful negotiation could lead to the lifting of sanctions on Russian oil exports, potentially increasing global supply and mitigating risks to global energy flows.