Fuel market records new price peak
The cost of natural gas in European countries has exceeded the €97 per megawatt-hour mark for the first time since 2022. This was reported by the Bloomberg agency.
The price increase is linked to several factors: concerns about the reliability of fuel supplies during the winter period, the possibility of a new escalation in the Middle East, and meteorologists' forecasts of rapid cooling.
Vulnerability due to reliance on LNG
As the publication notes, market stability largely depends on liquefied natural gas (LNG) deliveries. This resource has become key for meeting Europe's needs following the 2022 energy crisis. However, instability in the LNG supply chain makes the continent vulnerable to potential fuel disruptions right before the peak demand season.
All-time low storage levels
An additional source of concern is the state of gas storage facilities. According to Bloomberg, storage facilities in European Union countries are approximately 75% full. This is the lowest figure for this period of the year over the entire observation period, which has been ongoing since 2009.
The situation in Germany looks even more complicated: gas reserves there amount to slightly more than 61% of total storage capacity.
Risks for the winter season
The combination of low stock levels, risks to LNG logistics, and expected cooling intensifies experts' concerns about Europe's ability to secure its gas supply throughout the winter.
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