Low gas storage levels could lead to higher prices. Germany entered the heating season with a significant shortfall

Gas storage facilities in the EU were around three-quarters full at the beginning of November, while German facilities were only 61% full. Low storage levels do not in themselves mean a physical gas shortage, but they reduce the buffer for the cold season and can make the market more sensitive to supply constraints. Wholesale gas prices over the coming months will depend primarily on the weather, LNG imports and how quickly storage facilities are depleted over the winter.

Gas storage facilities across the European Union were nearly 75% full at the beginning of November, while Germany’s level was only 61%. The German figure therefore lagged significantly not only behind the European average, but also behind the national target of around 70% set for the beginning of the month.

A smaller buffer makes the market more sensitive

The price of natural gas is not determined solely by the volume of gas in storage facilities. What matters is whether the market can secure additional supplies in time, especially if cold weather sets in or imports are constrained. Low storage levels across Europe could therefore amplify the price impact of further disruptions, for example due to unplanned outages in Norway or overseas. In that case, traders could have less scope to meet winter demand by drawing on storage.