Days are getting colder, and European gas storage draws are getting stronger: EU storage withdrawals are ramping up quickly and reached close to 0.5 bcm/d this week as colder weather bites in and drives space heating in the residential and commercial sectors.
This once again highlights the flexibility of the European storage system and its role in smoothening gas prices even during colder days. And we are in a quite comfortable place: EU storage sites are 97% full, with inventory levels standing 13 bcm above average.
Still, a colder winter together with unexpected supply disruptions and lower LNG availability could renew market tensions in the second half of the winter, when storage sites are less full.
What is your view? How will the European winter market evolve? Any early bets on
storage levels at the end of the 2023/24 heating season?
Source: Greg Molnar