TTF prices settled 3.25% lower yesterday following China’s retaliatory tariffs on US LNG, ING's commodity expert Warren Patterson notes.

Appetite for speculators to increase longs is likely limited

"The market remains relatively nervous over storage levels and the bigger job Europe will face to refill storage over the injection season. However, one would expect the market to face some resistance around current levels (in the absence of any supply shocks)."

"Gas is deep in the coal switching range, even when considering the recent strength in EUA prices. Furthermore, the investment fund long in TTF seems fairly stretched and so the appetite for speculators to increase this significantly more (in the absence of a bullish catalyst) is likely limited."