European natural gas prices rise as storage facilities begin to be used

⑴ Traders have begun tapping into winter gas storage, leading to a rise in European natural gas prices, indicating increasing heating demand and further pressure on already low inventory levels.⑵ EU gas storage facilities are below 75% capacity, marking the lowest level for the same period since records began in 2009, making Europe increasingly reliant on flexible LNG cargoes.⑶ If inventories are depleted rapidly this winter, more natural gas will be needed to replenish reserves next summer; as the market weighs supply risks, the contract price for May 2027 is already higher than the price for November next year.