European Gas prices extend losses – ING

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."