European Natural Gas prices fell sharply as forecasts pointed to warmer weather and strong LNG send-outs eased immediate supply concerns, ING's commodity experts Ewa Manthey and Warren Patterson note.
"European Natural Gas prices came under significant pressure yesterday, with TTF falling more than 5.5% over the day. While the weather in Europe has been colder than usual recently, forecasts indicate milder conditions later in the month. LNG send-outs have been seasonally strong, which will help ease any supply concerns in the market."
"However, Gas storage has now fallen below 60%, well below the 5-year average of 73% full, which should limit further downside in the short term."