European Gas prices remain under pressure as mild weather weighs on demand, but below-average EU storage levels and a heavily short-positioned market could provide support if colder conditions materialize later this month, ING’s commodity experts Ewa Manthey and Warren Patterson note.
Colder outlook offers support
« European natural Gas prices continued to come under pressure yesterday, with the Tittle Transfer Facility (TTF) settling 2.4% lower. Milder weather weighed on the market. However, forecasts show that weather is set to turn colder than usual later in the month, which should provide some support to prices. »
« Particularly when you consider that EU Gas storage is below average, at 69% full at the moment vs. a 5-year average of 78%. The record-large gross short that investment funds hold in TTF continues to pose a risk. »