European gas prices slipped below EUR30/MWh as mild weather forecasts and ample LNG supply eased short-term concerns, though lower storage levels and fund positioning keep market risks present, ING's commodity experts Ewa Manthey and Warren Patterson note.

EU Gas storage drops faster than 5-year average

"European Gas prices came under further pressure yesterday, with the Title Transfer Facility (TTF) trading below EUR30/MWh to its lowest level since May 2024. Ukrainian peace talks weighed on prices somewhat, while weather forecasts for December suggest milder-than-usual temperatures after a recent cold spell."

"The colder weather in recent days has led to Gas storage in the EU falling more rapidly. It’s now 79% full, down from a 5-year average of 89%. The large investment fund gross short in the market still leaves plenty of positioning risk, particularly as we move deeper into winter. For now, funds seem to believe that the supply outlook is comfortable, with growing LNG supply."