The natural gas market has rallied a bit in the early hours of Tuesday, as we are hanging around the crucial level in the form of $3.50 in this market.

The front month prices surpassed $4.0 per MMBtu on January 15, levels last seen in early 2023', analysts at BMI highlighted.

European natural gas prices jumped to two-year highs Monday, as higher fuel demand due to colder temperatures risks draining already low inventories. The benchmark front-month gas contract at the Dutch TTF hub rose as much as 5.

Natural gas prices soar as cold weather tightens US inventories. Traders eye key resistance at $3.505, with LNG demand and supply risks fueling a bullish outlook.

After averaging $4.13 per million British thermal units in January — including a daily high of $9.86 on 17 January ahead of the winter storm — the EIA now expects Henry Hub spot prices to average $3.80 in 2025, a 20% spike from its previous projection. The benchmark could also rise to nearly $4.20 per million Btu in 2026.

TTF benchmark continued its creeping upward climb after hitting €55 per mmBtu on Friday, the highest since October 2023, with EU gas inventories now 50% full.

European natural-gas prices jumped in early trade, reaching a two-year high as stronger fuel demand due to colder temperatures risks draining already low inventories.