European Natural Gas prices rose again as colder weather and lower wind generation boosted demand expectations, even as storage levels remain below average and speculative interest stays muted, ING’s commodity experts Ewa Manthey and Warren Patterson note.
EU Gas storage at 83%, below five-year average
“European Natural Gas prices continued to show strength yesterday, with the Title Transfer Facility (TTF) settling 2.55% higher. EU Gas storage remains stable at around 83%, below the 5-year average of 92%. Prospects for lower wind generation and colder-than-usual weather in December provided a boost to the market.”
“The EU Gas balance remains vulnerable this winter, although it’s clearly something that the market is not overly concerned about. This is evident from the lack of interest from speculators in the European Gas market.”