Europe Faces Sharp Increase in Gas Prices, According to The Guardian

Europe is nearing the heating season with gas supplies reaching their lowest levels in the last 13 years, raising concerns in the energy market, reports The Guardian.

Experts warn of the risk of a sharp increase in prices this winter, especially in the event of cold weather or reduced electricity generation from wind.

As of late August, European gas storage facilities were about 63% full. This is significantly lower than the average for this time of year in recent years, which is about 80%. Under the current withdrawal rates, the European Union may enter the heating season with reserves approximately 20% below the average level of the last five years.

Gas market analyst Greg Molnari estimates that if the situation does not change, reserves will be the lowest since 2013. Low storage levels increase the likelihood of sharp price fluctuations this winter, particularly during prolonged cold spells or weak winds that can boost gas demand.

Great Britain remains particularly vulnerable. The country is among the largest consumers of gas in Europe but has relatively small domestic storage capabilities. Normally, Great Britain compensates for this by relying on piped supplies from Europe and imported liquefied natural gas from the United States and Middle Eastern countries.

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