INFOGRAPHIC: European Q4 gas focus on storage, LNG as winter kicks in

As Europe prepares for the onset of the winter gas season, both gas and power markets find themselves in a precarious balance, with traders and analysts surprised by the recent lack of volatility.

Gas storage levels are lower than in 2023 and 2024, reducing Europe's buffer against potential supply shocks or extreme weather. With increasing LNG supply set to come to market, the EU has also introduced new flexibility into its gas storage targets.

For Europe's main power markets, S&P Global Energy forecasts a 1% year-over-year increase in demand in Q4. The supply side remains well positioned, with wind expected to top the Q4 power mix.

Meanwhile, the European carbon complex enters Q4 in surprisingly robust shape, driven by strong compliance demand and steady thermal power generation.