European natural gas prices fell sharply as forecasts for warmer weather and strong LNG dispatches eased immediate supply concerns, ING commodities experts Ewa Manthey and Warren Patterson noted.
Gas storage is shrinking even as prices fall
“European natural gas prices came under significant pressure yesterday, with TTF down more than 5.5% on the day. While the weather in Europe has been cooler than usual recently, forecasts point to milder conditions later in the month. LNG deliveries have been seasonally strong, which will help alleviate any supply concerns in the market.”
“However, gas inventory has now fallen below 60%, well below the five-year average of 73%, which should limit further decline in the short term.”
