German Bank: Risks of Soaring European Natural Gas Prices Still Exist

Carsten Fritsch of Deutsche Bank stated that the natural gas market remains tight, as inventories have not reached seasonal lows. If the weather turns colder, there is a risk of short-term price spikes. The benchmark Dutch TTF natural gas futures contract fell by 1% to 30.61 euros per megawatt hour, due to forecasts of milder weather and a significant drop in prices at the Henry Hub in the United States. The commodity analyst mentioned that the EU's natural gas reserves are far below seasonal levels, but ample supplies of liquefied natural gas should help prevent a complete shortage of supply in the remaining winter months. However, with inventory withdrawals expected to continue for several weeks, the market remains vulnerable to the impact of cold weather and volatility.