The EU has recorded a historic decline in gas storage levels.

Europe is rapidly depleting gas reserves due to increased heating demand

According to Bloomberg, the filling level of underground storage in Europe is decreasing and is a little over 70% compared to 86% last year. The rapid depletion of reserves could complicate accumulation ahead of the next heating season and impact prices in the near future.

According to Gas Infrastructure Europe, the filling level of storage has significantly decreased, with the largest drop since 2018.

Cold weather has engulfed northwestern Europe, leading to further declines in gas reserves.

The region is becoming increasingly vulnerable to market volatility due to dependence on global liquefied natural gas (LNG) to compensate for the shortfall caused by the cessation of supplies from Russia via Ukraine.

Unplanned supply issues can affect the balance in the region and cause price fluctuations. For example, in Norway, the Hammerfest LNG plant has halted operations until January 9 due to a malfunction.

Gas prices have already risen by 4% last week and are nearing a 14-month high due to dwindling stocks and supply constraints.

The price of gas on the futures market in the Netherlands has slightly decreased - by 1.2% to €49.05 per megawatt-hour.