FX.co ★ TTF Prices Drop from 7-Month High

European natural gas futures experienced a decline of over 7%, settling at approximately €34 per megawatt-hour. This drop follows a sharp increase of about 30%, which had previously pushed prices to a seven-month high of nearly €37. The recent pullback is attributed to a market reassessment of weather forecasts and their potential impact on gas storage levels. While predictions still indicate colder weather towards the end of the month—factors that could boost heating demand and accelerate withdrawals from already low inventories—current EU gas storage is only about 50.4% full. This figure is significantly lower than the 61.7% recorded at the same time last year, leaving the region vulnerable to fluctuations in weather and supply dynamics. Additionally, competition for gas cargoes may escalate, as parts of Asia are preparing for a cold wave that could drive up heating demand and further tighten the global liquefied natural gas (LNG) market.