Europe faces another year of high gas prices as reserves deplete

Europe: Europe encompasses the EU member states and broader continental gas markets that rely on imports for much of their energy needs. The region is currently navigating depleted storage levels and elevated wholesale prices stemming from global supply disruptions. Industry participants and analysts are monitoring restocking needs and potential further volatility into the following year. Jason Ying: Jason Ying is a commodities analyst at BNP Paribas. He pointed to potential weather-related reductions in gas demand but stated that full normalization of the gas market to pre-conflict levels is unlikely until 2028. Craig Lowrey: Craig Lowrey is principal consultant at Cornwall Insight. He indicated that volatility in European gas markets is likely to persist for many more months given current stock levels. Yuriy Onyshkiv: Yuriy Onyshkiv is an analyst at LSEG specializing in energy markets. He has highlighted the risk that European gas storage could remain tight into the next summer due to current depletion levels and ongoing supply constraints. Florence Schmit: Florence Schmit is an energy strategist at Rabobank. She maintains a moderate price outlook for 2027 and 2028 while observing that LNG supply growth elsewhere may be underestimated by the market. Andreas Schroeder: Andreas Schroeder is head of gas and LNG analytics at ICIS. He expects the US-Iran conflict to resolve over winter but cautioned that markets have not fully priced in the storage injection demand ahead. Moutaz Altaghlibi: Moutaz Altaghlibi serves as senior energy economist at ABN Amro. He noted that while Europe is not facing an outright shortage, the lack of an operational buffer leaves the market vulnerable to disruptions and sustained high prices from Asian competition for LNG. Ana Maria Jaller-Makarewicz: Ana Maria Jaller-Makarewicz works with the Institute for Energy Economics and Financial Analysis. She described the current energy situation as a slow-motion crisis and expressed concern that its full magnitude has not yet been realized. Policy Response: The EU has proposed measures including electricity tax reductions and coordinated storage refilling, while its energy chief has called for member states to further cut gas demand. Storage Outlook: European gas storage is projected to end the restocking season well below historical averages, increasing dependence on winter imports and setting up challenges for the following refill period. Supply Disruption: The ongoing Iran-related conflict has led to shipping disruptions through the Strait of Hormuz, reducing available LNG for Europe and heightening competition with Asia.