⏬Powerful sell-off in gas market!📉

Gas in Europe loses more than 15%, and NATGAS in the US is down more than 5% from daily peaks

Gas prices are losing heavily today. The TTF generic gas contract in the Netherlands is down more than €50 to €285, although the market has already seen prices of €270. Currently, the decline is about 15%. Natgas, on the other hand, is losing 1-2%, although it is down as much as 5% from the peak pegged at the opening, in the area of $9/MMBTU. 

Why the gas price declines? Germany's energy regulator has indicated that gas storage facilities are filling up much faster than expected. At this point, Germany's storage facilities are 83% full, higher than last year, with limited gas supplies from Russia (NS1 was operating normally, but other sources no longer). Storage facilities across the EU are about 80% full. Thanks to the reduced energy risk, EURUSD is back near parity. In addition, the EC chief indicates that the EU is working on common energy policy solutions and preparing "intervention" tools. 

The biggest drops in gas prices since March. If the declines were to maintain the momentum, a return to the vicinity of €200 would not be ruled out, which would allow the EURUSD to break above parity for an extended period. Source: Bloomberg

Gas in the US also reacts to reports from Europe. The correlation with the European market is becoming clearer. NATGAS is testing the neckline of a potential Head and Shoulders formation. Source: xStation5