Natural Gas Prices Drop in Europe Today, Yet Remain Close to Yearly Highs

Forex - Natural gas prices in Europe have shown a decline early in the morning, but they remain at this year's highest levels due to colder weather and milder winds boosting demand. While gas stocks in Europe are decreasing at a faster rate than normal, the benchmark Dutch TTF gas contract reached 44 euros per megawatt hour yesterday, marking its highest level to date.

ANZ Research analysts noted, “The decrease in electricity generation from renewable energy sources is forcing utilities to increase gas-fired power generation. With cold weather expected until the end of November according to weather forecasts, the decline in stocks may accelerate.”

The filling level of natural gas storage in Europe fell by 0.20% on Sunday to 93.37%. Germany's filling level is at 96.75%, France's at 93.22%, and Italy's at 97.21%.

Concerns over market supply issues persist, particularly regarding whether Russian gas will reach Europe in the new year and what Donald Trump's return to the White House could mean for the war in Ukraine. The TTF contract is currently trading at 43.45 euros per megawatt hour, down 0.6%.