European natural gas futures rose toward €35/MWh, rebounding from a three-week low of €32.86 on Feb 3 as below-normal wind generation lifted demand for gas from power plants and tightened near-term supply. Wind output across north west Europe remains weak, increasing reliance on gas for electricity generation. While temperatures are currently above normal and expected to peak by Sunday, colder conditions are forecast from February 13, which could boost heating demand. Low storage levels continue to support prices, with EU gas inventories around 39.2% full compared with about 52% a year ago. Storage remains particularly low in Germany at 30.2%, France 29% and the Netherlands 23.5%. EU stocks are projected to fall to about 26% by the end of March, implying strong summer injections will be needed to reach 90% before next winter. Higher LNG arrivals this week may ease pressure, while markets also monitor Ukraine Russia peace talks for supply implications.
