Europe's Gas Stocks Plummet, Leaving Winter Prices at Risk

Europe's natural gas stocks have reached an all-time low of just under 58% full, sparking concerns about potential price spikes in the region. This comes after a series of events that disrupted global supply, including the US-Israeli war on Iran and reduced Russian pipeline deliveries. Europe has shifted its focus to liquefied natural gas (LNG) imports, but this increased dependency on LNG means it's now vulnerable to possible price fluctuations.

David Lewis, senior research analyst at Wood Mackenzie, warned that a very cold winter or prolonged supply disruptions could lead to demand mitigation measures, higher prices, or even market shortages. The EU has set a target to fill storage to 80% of capacity by December, down from the previous 90% goal.

Analysts are doubtful about reaching this target, and forecasts suggest that gas prices could rise to €110-€210 per megawatt hour if LNG remains constrained and winter proves colder than normal. The current situation is described as a 'very risky situation' by experts.