EU Gas Storage Levels Critically Low Amid Middle East Disruption

European Energy Commissioner Dan Jørgensen is warning EU governments to continue reducing energy demand due to low gas storage levels. In a recent letter, Jørgensen emphasized that the situation has not improved since his first warning in March, and it's essential to sustain injections or reduce gas and electricity demand for as long as necessary.

The current gas storage is around 70% full, which is roughly 12 percentage points below the same point last year. This shortage is mainly due to continued disruption in the Middle East and fierce competition from Asia for liquefied natural gas (LNG) cargoes.

The Dutch TTF, the European benchmark for natural gas prices, has been trading at around €72 per MWh since the US and Israel bombed Iran on 28 February. Analysts are predicting potential spikes above €100/MWh during peak winter if LNG export volumes from the Gulf fail to grow or if Norwegian maintenance prolongs export constraints.