European natural gas prices held steady below €35 per megawatt-hour as updated weather forecasts predicted milder temperatures across the continent. The benchmark Dutch TTF futures contract traded at €34.50, reflecting reduced immediate demand for heating fuel.

Meteorologists expect temperatures to rise 2-4°C above seasonal norms in key markets including Germany and France over the next week. This follows January's cold snap that pushed storage levels to 65% capacity - still higher than historic averages for this time of year.

Traders are unwinding winter supply risk premiums as the weather outlook improves. Gas storage facilities remain at 72% fullness, well above the 55% five-year average, reducing urgency for spot purchases. Industrial consumers welcome the price stability after 2022's volatility.

The moderation provides temporary relief for manufacturers facing high energy costs, though analysts caution that geopolitical risks and LNG supply shifts could reignite volatility. Prices remain 40% below September peaks but triple pre-crisis levels.