EU Gas Storage Hits Record Low Amid Iran War and Russian Sanctions

The European Union is facing a winter energy crisis as gas storage levels hit a record low. According to data from ENTSOG, EU gas stocks are at around 64% capacity as of Friday, far below the 80% average maintained during this season over the past several years. Germany's gas storage is only slightly above 50%, while the Netherlands and Belgium are at around 45% and 50% respectively.

Natural gas prices have risen above €66 ($76) per megawatt-hour, more than double from levels earlier in the year. Analysts say that low storage levels increase the risk of heightened winter price volatility. The market is also exposed to cold weather, low wind generation, and unforeseen supply disruptions.

The Iran war and energy sanctions on Russia are contributing to the crisis. The EU has vowed to wean itself off Russian energy, but this has reduced its share of imports from 45% in 2021 to around 12% by 2025.