European Gas Storage Fill in 2017 - Inventory well above average!
European gas storage utilisation has been high in 2017, with October inventories being well above average at 91 bcm. With storage values being set by low summer-winter price speads at hubs, those market participants with oil linked contracts have been able to take advantage of this situation. Oil indexed prices were below TTF hub prices during Q3 2017, giving seasonal trading opportunities. Rising oil prices also encourages gas market participants with lagged oil indexed contracts to store gas and continuing high Russian gas flows to Europe support this view.