European natural gas prices climbed higher Monday, breaking from the sharp losses of recent weeks as the market weighs increased competition with Asia for LNG and colder weather forecasted for later in the month. 

The February Title Transfer Facility (TTF) contract gained 7% Monday to finish above $23/MMBtu. It remains at pre-war levels, but above where it finished last week, when the contract plunged to a range not seen since 2021. TTF has declined by roughly 50% over the last month amid a stretch of above-normal temperatures and record liquefied natural gas imports.

“…Market participants believe that the European gas balance is not comfortable enough to afford a significant boost in gas demand for power generation, particularly as the price decline could also trigger a...