European natural gas prices have dropped to the lowest levels since August, driven by traders’ confidence in the region’s substantial reserves lasting through the winter. The TTF benchmark in Amsterdam reached a five-month low, down almost 10% from the previous week, despite a brief rise. The current cold snap across Europe is not expected to last for a lengthy period, with most of mainland Europe trending warmer than norms next week.
The current price is significantly lower than the same period last year. Traders are focusing on Europe’s storage levels, which are at 83% full, the second-highest for this time of the year since 2011. Despite warnings from the International Energy Agency, the EU has maintained comfortable storage levels, partly due to mild winter weather and increased imports of liquefied natural gas last summer.
