LIBER Europe
The agency reports that adverse weather conditions have led Europe to deplete its gas reserves more quickly this winter. The EU has no risk of depleting them; however, there are worries regarding the speed at which storage facilities will be refilled for the upcoming winter. These concerns have caused a significant increase in summer gas contract prices, and as of yesterday, February 10, short-term gas prices hit a two-year peak.
Bloomberg states that buyers usually aim to capitalize on reduced summer prices for gas, intending to either use it in the winter or resell it for a profit. In January 2025, the gap between summer and winter futures prices reached the highest point in three years. By February, this gap in price had increased to €5 per MWh. This will lead to a loss of approximately €3 billion when Europe purchases gas in summer and sells it in winter, covering all the volumes required for the EU to fill its storage capacity to 90%.
Currently, the storage facilities are filled to 49%. As reported by Bloomberg, this represents the lowest level since the energy crisis in 2022. This occurred amid the cessation of Russian gas transit via Ukraine.
source: bloomberg.com
Bloomberg states that buyers usually aim to capitalize on reduced summer prices for gas, intending to either use it in the winter or resell it for a profit. In January 2025, the gap between summer and winter futures prices reached the highest point in three years. By February, this gap in price had increased to €5 per MWh. This will lead to a loss of approximately €3 billion when Europe purchases gas in summer and sells it in winter, covering all the volumes required for the EU to fill its storage capacity to 90%.
Currently, the storage facilities are filled to 49%. As reported by Bloomberg, this represents the lowest level since the energy crisis in 2022. This occurred amid the cessation of Russian gas transit via Ukraine.
source: bloomberg.com