ING highlights that investment funds in TTF gas remain relatively relaxed despite LNG supply disruptions in the Middle East. The bank notes that speculative accounts reduced length but still hold a sizeable net long position, which they argue leaves considerable upside risk for TTF prices if LNG flows through the Strait of Hormuz do not resume soon as currently anticipated.

Funds stay long despite disruptions

"Positioning data for TTF continues to show that investment funds have been somewhat unfazed by ongoing LNG supply disruptions in the Middle East amid optimism over a resumption of LNG flows through the Strait of Hormuz."

"Funds sold 17.9TWh in TTF last week, leaving them with a net long of 262.2TWh."

"Clearly, this leaves a fair amount of upside risk if we do not see an imminent resumption of LNG flows."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)