European natural gas futures rebounded from a 20-month low as slowing LNG flows raise concerns over supply balance.

European natural gas futures prices have started to rebound since hitting a 20-month low, as traders assess the impact of slowing liquefied natural gas flows on supply balance in the region. Since December, liquefied natural gas imports in the northwest European region and major ports in Italy have seen a slight decrease compared to the previous month. Despite moderate weather conditions suppressing heating demand, Europe still needs to attract stable fuel inflows, keeping natural gas prices fluctuating within a relatively narrow range this week. "Given the low inventory levels, Europe still needs to continue purchasing liquefied natural gas this winter," analysts at the Royal Bank of Canada (RBC) wrote in a report. They noted that these factors "leave room for a slight increase in prices in the first quarter," but overall market sentiment remains bearish amidst increasing global supply. In terms of weather conditions, meteorological forecasts predict above-average temperatures for the remaining period of this month; however, some weather forecasts for January suggest a possibility of cooling temperatures. Regarding inventory levels, the current fill rate of natural gas storage facilities has not yet reached 72%, compared to an average of 81% for the same period over the past five years, although the extraction rate of natural gas has recently slowed down. As of the time of writing, the Intercontinental Exchange (ICE) Dutch TTF natural gas futures for January 2026 rose by 1.3%, closing at 26.96 per megawatt-hour; the contract had previously hit its lowest point since April 2024 in the previous trading day.