Europe's Gas Stocks in Crisis Ahead of Winter

Europe's natural gas storage reserves are woefully understocked ahead of winter, sparking economic and political tensions. Germany, in particular, is struggling to contain public discontent as high energy prices fuel a surge in support for far-right parties.

The country's Alternative for Germany (AfD) party won state elections last week on a platform demanding peace with Moscow and the restoration of cheap Russian gas contracts. A further AfD victory this weekend would tighten the squeeze on conservative Chancellor Friedrich Merz as he weighs costly measures to lower fuel prices.

Natural gas storages, meant to serve as a buffer against supply and price shocks, are only 69% full, below the 85% average for this time of year over the last five years. Germany and the Netherlands, which hold 35% of the bloc's storage capacity, are major laggards due to high energy prices linked to the U.S.-Israeli war on Iran.

Economists warn that each month Europe delays restocking raises pressure on prices as peak winter usage approaches. Global oil prices have climbed above $100 a barrel in response to an upsurge in Middle Eastern conflict, pushing petrol prices 24% higher across the EU and diesel by 38%.