With gas prices continuing to ease it probably comes as no surprise the latest Commitment of Traders report show investment funds cut their net long positions last week. The markets have cited talks between the US and Russia on ending the war in Ukraine as well as calls from EU members on softer refilling targets as the reasons for the sell off. A draft document will be released by the European Commission next week with the final document expected to be published by the end of March. Recent remarks from President Trump regarding Ukraine are also making headline news. The geopolitical and regulatory risks appear to be changing however if these do not materialise and with still the need to fill storages over the summer, it will be an interesting few months to see if this is funds repositioning or the start of a physical change. In the short-term improved weather conditions will dampen demand levels whilst supply remains robust.
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