European natural gas prices fell nearly 2.4% on Wednesday, weighed down by reports of ongoing U.S.–Russia peace discussions, despite colder weather accelerating withdrawals from storage, according to ING commodity analysts Ewa Manthey and Warren Patterson.
- The Title Transfer Facility (TTF) benchmark settled down 2.4%, reflecting the influence of geopolitical developments.
- Colder temperatures have accelerated storage drawdowns, with EU gas storage now at 81% full, down from over 83% in mid-October.
Record Short Positions Raise Squeeze Risk
Data shows investment funds reduced their net long positions in TTF by 8.7 TWh, bringing it down to 15.6 TWh, the lowest since March 2024.
At the same time, gross short positions climbed by 19 TWh to a record 434.3 TWh, highlighting the market’s vulnerability to a short-covering rally if supply disruptions or extended cold weather occur this winter.