European natural gas prices have strengthened, with the Dutch Title Transfer Facility (TTF) benchmark moving above EUR 60 per megawatt-hour (MWh) this week, according to ING analysts Warren Patterson and Ewa Manthey [1]. Despite this price increase, investment funds have reduced their net long positions in TTF by 16.6 terawatt-hours (TWh), bringing the total down to 228.2 TWh over the latest reporting week [1].
Concerns are mounting regarding the trajectory of European gas storage levels as the region approaches the 2026/27 heating season. The latest data from Gas Infrastructure Europe indicates that EU gas storage slipped by 0.01 percentage points to 59.32%, a marginal decline but notable given that it occurred during the injection season when storage levels typically rise [1].
Ongoing disruptions to liquefied natural gas (LNG) supplies from the Persian Gulf are further exacerbating worries about Europe's ability to adequately fill storage ahead of future heating seasons. These supply risks are contributing to the upward pressure on TTF prices, even as some market participants reduce their exposure [1].
CONCLUSION
European natural gas prices are experiencing upward momentum due to storage concerns and LNG supply disruptions, despite a reduction in speculative long positions. The marginal decline in EU storage during the injection season highlights ongoing risks to supply security as the region looks ahead to future heating seasons.