NATURAL GAS
European storage injections have stood at a record 7 bcm since the beginning of October according to the IEA. That point of the year typically marks the start of the gas winter.
- Unseasonably mild temperatures effectively delayed the start of the European heating season - down by an estimated 30% yoy since the start of Oct.
- Industrial gas demand remains depressed, standing 30-40% lower compared to its last year's levels.
- Stronger wind and solar output reduced the call on gas burn in the power sector by almost 1 bcm yoy since October.
- EU storages stand 9% or 8 bcm above their 5y average but this safety buffer could be rapidly eroded: 8 bcm equates to roughly 3 days of gas consumption during a cold spell.
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