European Gas Storage Falls Short of Seasonal Norm

European gas storage has fallen short of its seasonal norm as net injections into EU gas storage increased to 2.1 billion cubic meters, but remained below last year's 2.2 billion cubic meters and the seasonal norm of 2.3 billion cubic meters.

According to UBS, European gas storage reached 62% capacity as of August 18, which is lower than the 74% level recorded a year earlier and the five-year average of 79%. The EU aims to fill gas storage to 80% capacity by winter.

The Strait of Hormuz headlines have continued to influence gas prices, with hot weather and low EU inventories providing support to the fundamental backdrop. Asian LNG arrivals decreased 15% week-over-week in the week ending August 15, remaining 6% lower year-over-year.