European natural gas prices rebounded Monday after falling from multi-year highs late last week, as low storage inventories and strong demand in Asia continue supporting prices on the continent.

The prompt Title Transfer Facility (TTF), Europe’s leading gas benchmark, hit a multi-year high of $10.241/MMBtu Thursday before falling to finish the week Friday at $9.883. A decline in carbon prices, along with a jump in Russian and Norwegian pipeline imports pressured prices on Friday. Nord Stream 2’s announcement that pre-commissioning work would begin Friday also weighed on the contract. 

But storage inventories remain at just 42% of capacity, compared to the five-year average of 56% for this time of year. Meanwhile, U.S. and Australian maintenance, and strong buying ahead of...