Dutch natural gas futures strengthened on Friday as traders reacted to a combination of low inventories, persistent cold conditions and geopolitical developments that could affect liquefied natural gas (LNG) supplies. Market participants focused on both near-term and prompt contracts as the supply-demand balance tightened.
The January contract at the TTF hub rose 0.48 euro to 40.45 euros per megawatt hour, equivalent to $14.12 per million British thermal units, according to Reuters reporting of the trade. Attention among traders has shifted toward the March contract, which climbed 0.47 euro to 38.85 euros per megawatt hour as participants assessed winter demand and storage trajectories.
By contrast, the Dutch day-ahead contract recorded a small decline, slipping 0.06 euro to 40.35 euros per megawatt hour. The mixed movement between prompt and near-term contracts reflects market dynamics where immediate delivery pricing can diverge from settlement in the coming months as weather forecasts and storage data evolve.
Analysts highlighted gas storage as a principal vulnerability for the market given the ongoing cold spell. Data from Gas Infrastructure Europe show EU gas storage facilities were 42.9% full, markedly lower than the 55% level recorded in the same period last year and below the five-year average of 58%.
Geopolitical tensions involving Iran were also cited as a factor that could weigh on LNG deliveries, adding an additional layer of supply risk to a market already focused on inventories and temperature trends. Traders are monitoring these developments alongside demand forecasts to gauge how much upward pressure may persist on futures.
With storage levels significantly under the recent norms and cooler weather increasing heating demand, market attention is likely to remain on inventory reports and any news that could influence LNG flows. Both the immediate pricing for day-ahead supply and contracts covering later winter months are responding to these combined influences.
Note: The article presents market movements and storage figures reported for the TTF hub and EU storage levels, and references geopolitical concerns that could affect LNG deliveries. No additional data or forecasts are included beyond these reported observations.