European natural gas has rallied: Dutch TTF near-month contracts are up about
12% week-to-date and at their highest since end-2022. Goldman Sachs raised its
TTF target to €70/MWh — marginally below current levels — saying Europe will
need to accept that price to draw LNG cargoes from Asia and rebuild inventories.
Royal Bank of Canada flagged EU storage at 67% and Germany at 55%, a shortfall
that could lift January energy prices, but noted rapid additions in solar and
wind and three consecutive springs of decade-low gas demand increase flexibility
for replenishing stocks. Barclays says current conditions do not yet constitute
a repeat of the 2022 energy crisis: prices remain well below 2022 extremes and
increased energy diversification by firms, plus a German recovery, support
regional resilience.
