22.08.202508:33:15UTC+00TTF Gas Prices Rebound, On Track for Weekly Gain

European natural gas futures have rebounded above €33 per megawatt-hour, recovering from a 15-month low of €31 recorded on August 15. This shift reflects diminishing optimism for a swift peace resolution in Ukraine. While there were initial hopes for President Trump to expediently broker a deal, those hopes have dimmed as Russia demands territorial concessions and influence over Ukraine’s security, complicating any potential agreement. Consequently, traders are anticipating prolonged supply constraints in Europe, with no indications that Russian gas flows will resume. Furthermore, the market is preparing for upcoming maintenance in Norway that will temporarily reduce output, exacerbating supply concerns. In response to increasing competition from Asia for liquefied natural gas (LNG) shipments, Europe may be compelled to offer higher prices, particularly since current storage levels fall short compared to last year. The European Union's reserves are now just under 75% full, down from over 90% at the same time last year, which heightens vulnerability as the winter heating season approaches. Gas futures have risen by nearly 8% this week following two consecutive weeks of decline.