EU Gas Storage Draws Begin With Reserves Below 15-Year Average

The European Union has begun drawing gas from storage with reserves below the 15-year average, leaving less room to absorb supply disruptions as winter demand approaches.

EU storage sites were about 74% full, while Germany’s facilities were about 61% full. EU inventories posted their first decline of the year.

Dutch front-month gas futures, Europe’s benchmark, topped €90 per megawatt-hour. The benchmark also reached its highest level since late 2022. Higher prices put pressure on industry, freight companies and households.

The smaller storage buffer leaves European buyers more reliant on the international gas market, where they compete with Asian buyers for liquefied natural gas (LNG). Disruptions around the Strait of Hormuz threaten supplies. Mild weather has eased heating demand and allowed utilities to add to reserves.