24 January | Macroeconomics

Europe's gas reserves are declining amid a cold snap and limitations on supplies from Norway

Gas supplies from Norway are expected to fall to their lowest level in more than 2 months. The drop in temperature has stimulated demand. Gas reserves in Europe are falling.

Servicing operations have caused production cuts at several Norwegian facilities. Concerns are eased by the high level of gas reserves in Europe and the large volume of LNG imports, despite supplies from Norway.

Low temperatures are expected for much of the week in northwest Europe. This could result in higher gas consumption over the next few days. Maxar Technologies' forecast suggests temperatures in London are 4.4°C below the seasonal average and 3.6°C in Paris. Next week is expected to be warmer.

A prolonged period of warm weather replaced by cold weather boosting demand for gas. The five-year average storage fill rate is 58%. Currently, it is 78%. According to the reserves this winter should pass without any major disruptions in Europe. Compared to the previous cold snap in early December, gas prices dropped by half.

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