EU Gas Storage Near Full as Bloc Prepares for Winter

A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
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EU Gas Storage Near Full as Bloc Prepares for Winter

A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov
A view shows gas wells at Bovanenkovo gas field owned by Gazprom on the Arctic Yamal peninsula, Russia May 21, 2019. REUTERS/Maxim Shemetov

European Union countries have nearly filled their gas storage as the bloc readies for winter and the potential stoppage of Russian gas deliveries via Ukraine, data showed on Wednesday.

Gas storage facilities across the 27-country EU are 90% full, marking the second year running in which the bloc has hit its 90% filling target in August - well in advance of a November deadline, the European Commission said.

Germany, which has the biggest storage caverns of any EU country, has filled them to 93% of capacity. Most EU members with storage sites have filled them to above 90%, data from Gas Infrastructure Europe showed.

According to Reuters, Russia used to supply around 40% of the EU's gas before the 2022 Ukraine war, after which Russian deliveries plunged and Europe raced to replace reliance on Moscow with more gas from countries including Norway and the US.

Europe faces a potential further loss of Russian gas this winter, as a transit agreement to deliver Russian gas to Europe via Ukraine is due to expire at the end of the year.

The EU has said it will not pressure Ukraine to extend this agreement, and has said countries can do without these deliveries, which totalled around 15 billion cubic metres (bcm) in 2023, out of total EU gas consumption of 295 bcm.

Europe's last winter was usually mild and had low energy demand, which left storage relatively full earlier this year, reducing the task of refilling depleted caverns during summer. Stored gas is called on during Europe's coldest months when demand for heating peaks.

"It's a combination of a very significantly higher starting point of storage and lower demand," Jacob Mandel, senior associate at Aurora Energy Research, said of current storage levels.

The GIE data showed a very different situation in Ukraine, where gas storage is just 23% full.

Mandel said the risks caused by the war and the high cost for Ukrainian companies to import gas have curbed the country's ability to build up storage reserves.

Ukrainian energy facilities have also come under nearly daily bombardment in recent months, causing blackouts, as the war grinds on following Russia's full-scale invasion in February 2022.

EU Energy Commissioner Kadri Simson called on Wednesday for Europe to provide the necessary support to Ukraine's energy system to help the country prepare for a "tough" winter.



Oil Prices Steady after Days of Losses

A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo Purchase Licensing Rights
A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo Purchase Licensing Rights
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Oil Prices Steady after Days of Losses

A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo Purchase Licensing Rights
A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia June 4, 2023. REUTERS/Alexander Manzyuk/ File Photo Purchase Licensing Rights

Oil prices steadied on Wednesday, with benchmark Brent holding above $77 a barrel, after steady sell-offs driven by expectations of reduced Chinese demand and diminishing concerns the conflict in the Middle East could spread and disrupt supply, Reuters reported.

Brent crude futures were up 14 at $77.34 a barrel by 1142 GMT. US West Texas Intermediate crude was 10 cents higher at $73.27.

Since peaking above $82 on Monday last week, Brent had shed 6.2% of its value by the end of trading on Tuesday, closing at a two-week low of $77.20. WTI fell 7.5% in the same period.

As expectations swirl economic weakness in China, the world's biggest crude importer, will subdue demand, stocks in the United States, the world's biggest producer and consumer of oil, are set to rise.

US crude oil stocks were forecast to have risen last week, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline and distillate stocks fell, however, according to the sources.

Official US government inventory estimates are set to be released on Wednesday at 10:30 a.m. (1430 GMT).