Rabobank has slashed its TTF Natural Gas price forecasts following reduced supply concerns after the Strait of Hormuz reopened to shipping traffic. Energy strategists Joe DeLaura and Florence Schmit announced the downward revision, citing easing geopolitical tensions that had previously threatened critical gas supply routes through the strategic waterway. The adjustment reflects improving market conditions as European benchmark gas prices face downward pressure from restored supply chain confidence.
However, the bank maintains caution around winter demand volatility, which could still trigger price spikes if cold weather materializes across Europe. Traders should note that while the immediate outlook has softened, seasonal risks remain elevated given Europe’s ongoing energy security challenges and limited storage buffers. The forecast revision impacts European gas futures positioning and related energy sector derivatives.
FXnCO Insight
Traders holding long TTF positions should reassess risk exposure as the supply picture improves, but maintain hedges against potential winter weather-driven volatility that could quickly reverse current bearish momentum.
Source: FXStreet