Gas prices in Europe are trading at their highest level in two years with the most active TTF futures moving above €58.5/MWh yesterday, ING’s commodity analysts Warren Patterson and Ewa Manthey notes.

US and EU natural gas prices edge higher

“The upward rally was driven by rising demand following cooler weather conditions, ongoing supply disruptions, weaker power generation from renewables and low levels of inventory at 48.5% currently.”

“Prolonged colder temperatures across Europe have intensified the need for heating eventually resulting in a faster depletion of inventories. Similarly, US natural gas prices edged higher in the week following the forecasts of cooler temperatures over much of the US.”