27.10.202514:40:06UTC+00TTF Prices Fall to 10-Week Low

European natural gas futures have decreased to approximately €31.2 per megawatt-hour, marking the lowest price since August 19. This drop is attributed to the mild, wet, and windy weather currently affecting Northern Europe, which has significantly reduced the demand for heating and electricity. The warmer, windy days have resulted in unusually low energy consumption for this season, while the strong production of wind-generated power has diminished the reliance on gas-fired electricity. Additionally, increased pipeline flows from Norway and consistent LNG imports have bolstered supply levels, compensating for reduced Russian deliveries. Furthermore, decreased demand from China has allowed more gas to be available for European purchasers. Storage levels throughout the EU are reassuringly high, standing at about 82.8%, with Italy at 94.5%, France at 92.8%, and Germany at 75.3%. This lessens concerns about potential shortages during the winter months. Despite the stable supply and ample storage, there is an air of caution in the market following the EU's announcement of new sanctions on Russia's energy sector, which includes a future prohibition on Russian LNG imports beginning in 2027.