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 Slips on Higher US Crude Stocks, Easing Mideast Tensions

FILE PHOTO: A view of the Stena forth drill rig for Springfield Group, the first independent African energy company to discover oil in deep sea, is pictured at the sea near Takoradi, Ghana November 15, 2019. REUTERS/Kweku Obeng/File Photo
FILE PHOTO: A view of the Stena forth drill rig for Springfield Group, the first independent African energy company to discover oil in deep sea, is pictured at the sea near Takoradi, Ghana November 15, 2019. REUTERS/Kweku Obeng/File Photo
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Oil Slips on Higher US Crude Stocks, Easing Mideast Tensions

FILE PHOTO: A view of the Stena forth drill rig for Springfield Group, the first independent African energy company to discover oil in deep sea, is pictured at the sea near Takoradi, Ghana November 15, 2019. REUTERS/Kweku Obeng/File Photo
FILE PHOTO: A view of the Stena forth drill rig for Springfield Group, the first independent African energy company to discover oil in deep sea, is pictured at the sea near Takoradi, Ghana November 15, 2019. REUTERS/Kweku Obeng/File Photo

Oil prices slipped on Wednesday on estimates showing swelling US crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
Brent crude futures fell 11 cents, or 0.1%, to $77.09 a barrel by 0630 GMT. US West Texas Intermediate crude dipped 14 cents, or 0.2%, to $73.03, Reuters reported.
US crude oil stocks were seen rising last week by 347,000 barrels, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline and distillate stocks, however, fell by 1.043 million barrels and 2.247 million barrels respectively, according to the sources.
The United States is the world's biggest producer and consumer of oil, and growing inventories point to oversupply that could pressure prices.

Meanwhile, US Secretary of State Antony Blinken wrapped up a trip to the Middle East intended to help broker a ceasefire agreement in Gaza.
Blinken and mediators from Egypt and Qatar have raised hopes for a US "bridging proposal," which could shrink the gaps between the two sides in the 10-month-old war.
"Hopes of a cease-fire between Israel and Hamas have weighed on oil, along with lingering demand concerns," ING commodities strategists said.
"While weaker Chinese demand has been well reported, refinery margins around the globe have been under pressure for much of August, suggesting that these demand concerns are not isolated to just China," they said.
The economic struggles in top crude importer China have continued to hobble the market, as weak processing margins and low fuel demand curbed operations at state-run and independent refineries.
Imports of crude oil from top supplier Russia fell in July by 7.4% from a year ago, while fuel oil imports retreated for a third straight month, customs data showed this week.