European natural gas prices hit the lowest level since 2021 on Tuesday as warmer weather has eased concerns that the region won’t have enough of the fuel to make it through winter, naturalgasintel.com reports.
The Dutch Title Transfer Facility (TTF) February contract fell to nearly $22/MMBtu on Tuesday. That’s a low not seen since November 2021 before Russia invaded Ukraine and sent natural gas prices soaring to record highs on supply fears.
Unseasonably warm weather has weighed down TTF in recent weeks, giving the market a reprieve and a chance to build storage inventories during the heating season.
“Indeed, relatively weak demand and comfortable supply made European gas stocks switch to net injection mode from Dec. 24, which also helped ease fears for the coming weeks and lower curve prices,” analysts at Engie EnergyScan said in a note to clients Tuesday.
European storage inventories were at 83.5% on Tuesday, up slightly from 83.1% a week ago. LNG imports have also helped replace pipeline gas shipments that have been suspended by Russia.
