EU Gas Stores Plummet to 13-Year Low Amid Winter Price Volatility

The European Union's gas stores are at their lowest level in 13 years, sparking 'winter panic' among energy traders and experts. The EU's gas stocks were only 63% full by late August, well below the average of 80% for this time of year. This is a concern because low storage levels increase the risk of price volatility during winter, which could be exacerbated by cold spells or slow wind patterns.

Greg Molnar, a gas analyst and professor, warns that the EU's gas stores may be about a fifth below their five-year average when winter begins. The UK is particularly exposed to market volatility due to its reliance on imports of gas from Europe and other regions. With low storage capacity in the UK, the country may struggle to meet demand during the winter months.

Experts attribute the depleted gas stores to various factors, including a cold end to last winter and higher-than-usual gas power generation during the summer heatwaves. The disruption of oil and gas exports from the Gulf region due to the US-Israel war on Iran has also contributed to the problem. As a result, European natural gas market prices have surged to three-year highs above €68 per megawatt-hour (MWh), more than double the price at the start of the year.