European natural gas prices came under pressure yesterday, falling almost 2.5% on the day, amid hopes of a Russia-Ukraine peace deal, ING's commodity experts Ewa Manthey and Warren Patterson note.

Russian pipeline gas can once again flow into Europe

"Also, the weather forecast in North West Europe is for milder temperatures over the next week. However, EU gas storage continues to tick lower. It’s now a little under 35% full, down from 60% at the same stage last year and below the five-year average of 46%." 

"Speculative longs have become nervous that a potential peace deal between Russia and Ukraine could see the resumption of some Russian pipeline gas into Europe."