Prices steady as plentiful storage offsets supply risks

inched down by 0.07 euro to 38.93 euros per
megawatt hour (MWh), or 12.56 $/mmbtu, by 0823 GMT, LSEG data 
showed. 
The October contract              was 0.05 euro lower at 
39.85 euros/MWh. 
Both contracts remain at levels not seen since December last year. 
"The price of the active monthly contract in the TTF market is at a relatively high level, especially for this time of 
year," Hans van Cleef at PZ Energy Research & Strategy said in a 
note. 
The high prices were mainly due to risk premiums due to geopolitical turmoil, such as Ukraine's advance into Russian 
territory which sparked concerns over disruptions to Russian gas 
flows. 
However, gas keeps flowing via the Sudzha entry point continue despite fighting in the area. Russia's Gazprom said it 
would send 42.4 mcm/day of gas to Europe via Ukraine on 
Thursday, the same volume as on Wednesday. 
"The shift of front lines in Ukraine is not a threat to Europe's energy security. Storage is full, demand depressed, and 
the global market offers sufficient natural gas shipments," 
Norbert Ruecker, head of economics and next generation research 
at Julius Baer, said in a note. 
Likewise, geopolitics in the Middle East would need to take a serious turn for the worse to affect the region's natural gas 
exports, he added. 
European gas storages were last seen 88.2% full, close to their 90% target for Nov. 1, Gas Infrastructure Europe data 
showed. 
Ruecker said he maintained a bearish market view, but noted that hedge fund positioning in the futures market has reached 
extremely bullish levels and warranted a correction. 
According to analysts at ING, speculators have boosted their positioning in the Dutch gas market given the supply risks. 
Investment funds have increased their net long positions by a little more than 42 terawatt hours (TWh) to 234 TWh - the 
highest level since July 2021, they said. 
Further in, prices dipped as well, with the British day-ahead contract             down 0.5 pence at 78.50 pence per 
therm.
In the European carbon market, the benchmark contract edged eased by 0.78 euro to 71.09 euros a metric ton.