FX.co ★ TTF Prices Fall to Nearly 3-Month Low

European natural gas futures have decreased to below €34 per megawatt-hour, marking the lowest level since May, as the European Union continues its efforts to replenish storage reserves. Current inventory levels have surpassed 65% capacity, positioning the bloc to meet its target of 80% by November 1. This figure, however, remains under last year’s 83% and the five-year average, with critical countries such as Germany at 58%, Italy nearing 78%, and France exceeding 73%. In support of these efforts, the European Parliament has postponed the deadline to achieve 90% storage capacity from September to December. Europe's strategy includes enhancing LNG imports, following a winter that left storage levels lower than usual. A significant contributing factor has been reduced demand from China, where LNG imports fell by almost 20% in the first half of 2025. This decline has increased the global LNG supply, allowing Europe to secure more spot cargoes and bolster its inventories in preparation for the winter heating season. Despite these short-term gains, storage levels are still relatively low, leaving the region vulnerable to potential supply disruptions.