Europe on Course for a Difficult Winter Amid Gas and Diesel Shortages

The tight global supply of oil and gas is putting Europe on course for a difficult winter due to its significant dependence on energy imports.

The continent's gas storage levels are much lower than usual, with only about 50% full in late summer. This raises concerns over how much gas Europe will be able to secure ahead of the winter heating demand season.

In addition to low gas storage, Europe is also facing a diesel shortage, which threatens fuel oil supply security for the heating season.

The situation was exacerbated by the U.S.-Israeli war against Iran, which crippled Qatar's LNG export infrastructure and forced the Gulf state to declare force majeure on exports. This has led to a surge in gas prices, with the benchmark price in the EU increasing by 50% since mid-June.

Analysts warn that if imports of LNG continue at their current pace, the EU's gas storage levels will only reach 75% by November, far short of the target of 90% set by Brussels. Lowering the target does not improve supply security, and industries and households have been struggling with high energy costs for four years.