FX.co ★ TTF Prices Rise to 14-Week High

European natural gas futures have risen to approximately €33 per megawatt-hour, marking the highest point since early October. This increase is driven by forecasts of colder weather, which amplify concerns about supply and storage capacity. As temperatures are projected to drop by the month's end, heating demand is expected to rise, resulting in accelerated withdrawals from storage sites that are already under strain. Currently, EU gas inventories are at about 52.5% capacity, significantly lower than the 65% recorded the same time last year, rendering the market more vulnerable to weather fluctuations. Additionally, liquefied natural gas (LNG) export flows from the United States— the world's leading exporter— have dipped to their lowest in two months following disruptions at crucial terminals in Texas. Meanwhile, geopolitical tensions stemming from instability in Iran remain a threat to the global LNG trade, despite reduced fears of immediate U.S. intervention. Moreover, competition for LNG cargoes may increase as certain Asian regions brace for an impending cold wave, which could elevate regional heating demands and further constrain the global LNG market.