European natural gas prices are trading higher, driven by strong demand and falling inventory levels. The benchmark Dutch Title Transfer Facility (TTF) contract has increased by 1.4%, reaching 48.55 euros per megawatt hour.
Despite this rise, the contract has seen a decrease of about 3% over the past week, following the restart of the U.S. Freeport liquefied natural gas (LNG) facility.
The European Union's gas storage levels currently stand at 55.8% capacity. Demand for gas is also increasing due to a recent drop in wind power output.
Analysts at DNB Markets, which recently saw a 0.58% increase, have stated that they expect high LNG imports to continue, as current levels are not sufficient to balance the European market and replenish inventories for the upcoming winter.
In other news, the European Commission is likely to postpone its planned publication date for a roadmap to phase out the last remaining fuels from Russia, including LNG, according to a report by Bloomberg.
The delay in the release of this plan indicates the continued reliance on Russian fuels in the European market.
