European gas markets brace for winter

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Winter is coming, and Europe expects it to be tough - at least for natural gas markets.  

Since the start of the war in the Middle East, the EU has pushed for lower storage filling. The aim was to ease demand and temper price rises. 

Now, though, Europe is on track to hit the heating season with its lowest stocks on record. 

Experts don’t expect shortages, but they have warned about high prices. 

Major benchmarks have already hit multi-year records. 

With colder temperatures looming, governments are intervening. 

The European Commission is pushing to delay parts of a major methane emissions law that some had warned could stymie LNG trade.

Germany is another focus. It has the EU’s largest storage and it’s been particularly behind on filling. Berlin recently ordered state-owned energy company SEFE to stock more gas ahead of winter.

With less and less time to bridge the supply shortfall, more and more attention is turning to consumption.

The European Commission has urged member states to temper demand where possible.

But the key swing factor to watch will be the weather. 

With stocks low and prices high, governments will hope for a warmer winter.