EU Gas Reserves Hit 13-Year Low Ahead of Winter Price Volatility

The European Union's gas reserves have hit a 13-year low ahead of winter, sparking concerns about price volatility. According to The Guardian, unless gas injection rates accelerate significantly, stocks could be about 20% below the five-year average by the start of the heating season.

Greg Molnar, a gas market analyst, warns that low storage levels increase the likelihood of sharp price fluctuations during winter. Prolonged periods of cold weather or low wind power generation could exacerbate the situation, increasing gas consumption.

The European market has come under pressure due to supply disruptions from the Persian Gulf region and increased competition for liquefied natural gas from Asian buyers. As a result, prices have risen above €68 per MWh in recent weeks, more than double the level seen at the beginning of the year.

Goldman Sachs analysts predict that if gas supplies from the Middle East do not resume, the European price could exceed €100 per MWh to attract necessary volumes of LNG. However, they do not expect a physical gas shortage in Europe this winter.